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SB1515 - 572R - S Ver
Senate Engrossed
industrial
commission; revisions
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1515
AN
ACT
amending sections 23-107, 23-110, 23-401,
23-405, 23-406, 23-408, 23-409, 23-415, 23-417, 23-418, 23-423, 23-426, 23-428,
23-433, 23-471, 23-474, 23-477, 23-478, 23-491, 23-491.03, 23-491.04,
23-491.08, 23-491.09, 23-1065 and 41-1005, Arizona Revised Statutes;
relating to the industrial commission of Arizona.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section
1.
1. Section
23-107, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-107.
General powers
A. The commission has full power, jurisdiction and
authority to:
1. Formulate and adopt rules and regulations for
effecting the purposes of this article.
2. Administer and enforce all laws for the
protection of life, health, safety and welfare of employees in every case and
under every law when such duty is not specifically delegated to any other board
or officer, and, when such duty is specifically delegated, to counsel, advise
and assist in the administration and enforcement of such laws and for such
purposes may conduct investigations.
3. Promote the voluntary arbitration, mediation and
conciliation of disputes between employers and employees.
4. License and supervise the work of
private employment offices, bring together employers seeking employees and
working people seeking employment, and make known the opportunities for
employment in the state.
5.
4.
Collect,
collate and publish all statistical and other information relating to
employees, employers, employments and places of employment with other
appropriate statistics.
6.
5.
Act
as the regulatory agency
insuring
ensuring
that
workers' compensation carriers are processing claims in accordance with chapter
6 of this title.
7.
6.
Provide
nonpublic, confidential or privileged documents, materials or other information
to another state, local or federal regulatory agency for the purpose of the
legitimate administrative needs of the programs administered by that agency if
the recipient agency agrees and warrants that it has the authority to maintain
and will maintain the confidentiality and privileged status of the documents,
materials or other information.
8.
7.
Receive
nonpublic documents, materials and other information from another state, local
or federal regulatory agency to properly administer programs of the
commission.� The commission shall maintain as confidential or privileged any
document, material or other information that is identified by the exchange
agency as confidential or privileged under the laws of the jurisdiction that is
the source of the document, material or other information.
9.
8.
Enter
into agreements that govern the exchange of nonpublic documents, materials and
other information that are consistent with paragraphs
7
6
and
8
7 of
this subsection
.� The commission may request nondisclosure of
information that is identified as privileged or confidential.� Any disclosure
pursuant to paragraph
7
6
or
8
7 of this subsection
or this
paragraph is not a waiver of any applicable privilege or claim of
confidentiality in the documents, materials or other information.
B.
Upon
On
petition
by any person that any employment or place of employment is not safe or is
injurious to the welfare of any employee, the commission has power and
authority, with or without notice, to make investigations necessary to
determine the matter complained of.
C. The members of the commission may confer and meet
with officers of other states and officers of the United States on matters
pertaining to their official duties.
D. Notwithstanding any other law, the commission may
protect from public inspection the financial information that is received from
a private entity that applies to self-insure or that renews its self-insurance
plan pursuant to section 23-961, subsection A if the information is kept
confidential by the private entity in its ordinary and regular course of
business.
END_STATUTE
Sec.
2.
2. Section
23-110, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-110.
Industrial commission of Arizona resource officer
A. The director of the industrial commission
Of Arizona
shall employ
an ombudsman
a resource officer
to assist recipients of
workers'
compensation
benefits
under the industrial commission Of
Arizona's purview
.
B. The
ombudsman
resource officer
shall not provide legal advice but may provide
information about the workers' compensation system and rules governing
commission proceedings and may assist in clarifying the methods used to
determine a person's workers' compensation benefits.
C. The resource officer may also
provide information about the labor programs under the INDUSTRIAL commission Of
Arizona's purview and rules governing the COMMISSION proceedings for these
matters.
END_STATUTE
Sec.
3.
3. Section
23-401, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-401.
Definitions
In this article, unless the context otherwise requires:
1. "Board" means a review board
established pursuant to section 23-422.
2. "Chief" means the chief
of the division.
2.
3.
"Commission"
means the industrial commission of Arizona.
3.
4.
"De
minimis violation" means a condition or practice that, although
undesirable, has no direct or immediate relationship to safety or health.
4. "Director" means the
director of the division.
5. "Division" means the division of
occupational safety and health within the commission.
6. "Employee" means any person performing
services for an employer, including any person defined as an employee pursuant
to section 23-901, except employees engaged in household domestic labor.
7. "Employer"
:
(
a
)
Means
any individual or type of organization, including this state and all political
subdivisions of this state, that has in its employ one or more individuals
performing services for it in employment
.�
and
(
b
)
Includes
self-employed persons
.�
, but
(
c
)
Does
not include employers of household domestic labor.
8. "Interested party" means the commission
and the commission's agents, the employer and the affected employees of such
employer.
9. "Model system" means an exemplary and
voluntary
voluntarily
implemented worker
safety and health management system that
both
:
(a) Exceeds basic compliance with occupational
safety and health laws and regulations.
(b) Meets the requirements adopted by the division
pursuant to section 23-432.
10. "
Non-serious
Nonserious
violation" means a condition or practice in a
place of employment that does not constitute a serious violation but that
violates a standard or regulation and has a direct or immediate relationship to
safety or health, unless the employer did not, and could not with the exercise
of reasonable diligence, know of the presence of such condition or practice.
11. "Program" means the voluntary
protection program or any other program under which the
director
chief
recognizes and partners with workplaces that have
implemented a model system.
12. "Recognized hazard" means an unsafe or
unhealthful condition or practice recognized as such with respect to the
standard of knowledge in the industry.
13. "Regulation" means any written
regulation of occupational safety and health governing places of employment
formulated pursuant to section 23-410, exclusive of standards, and
shall have
has
the same meaning as and
include
includes
the term
"rule".
14. "Serious violation" means a condition
or practice in a place of employment that violates a standard,
a
regulation or section 23-403, subsection A and produces a
substantial probability that death or serious physical harm could result,
unless the employer did not, and could not with the exercise of reasonable
diligence, know of the presence of such condition or practice.
15. "Standard" means any occupational
safety and health standard that has been adopted and promulgated by a
nationally recognized standards-producing organization or the federal
government and
shall have
has
the
same meaning as
,
and
include
includes
the term "code".
16. "Trade secret" means a plan or
process, tool, mechanism, or compound not patented, known only to its owner and
those of the owner's employees to whom it is necessary to confide it, or other
information that the employer treats as confidential and has a reasonable basis
for doing so.
17. "Workplace" means a location or site
wherein work, either temporary or permanent, is being conducted in connection
with an industry, trade or business.
END_STATUTE
Sec.
4.
4. Section
23-405, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-405.
Duties and powers of the industrial commission relative to
occupational safety and health
The commission shall:
1. Administer
the provisions of
this article through the division
of occupational safety and
health
.
2. Appoint the
director
chief
of the division
of occupational safety and
health
.
3. Cooperate with the federal government to
establish and maintain an occupational safety and health program as effective
as the federal occupational safety and health program.
4.
Promulgate
Adopt
standards and regulations as required, pursuant to section 23-410,
and
promulgate
adopt
such other
rules and regulations as are necessary for the efficient functioning of the
division.
5. Have the authority to issue reasonable temporary,
experimental and permanent variances pursuant to sections 23-411 and 23-412.
6. Exercise such other powers as are necessary to
carry out the duties and requirements of this article.
END_STATUTE
Sec.
5.
5. Section
23-406, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-406.
Division of occupational safety and health; chief; appointment;
qualifications; compensation
A. There shall be a division of occupational safety
and health within the
industrial
commission.
B. The
director
chief
of the division
of occupational safety and health
shall be the administrative head of the division under the control of the
commission.� The
director
chief
shall be appointed by the commission and shall serve at the pleasure of the
commission.
C. The
director
chief
shall be:
1. A person who has been employed in the safety or
health profession a minimum of ten years in the aggregate and is currently
engaged in the broad practice of safety or health or one of its relevant
specialties or holds a degree from an accredited college or university
appropriate to the field of safety and health and has a minimum of five years'
experience in the broad practice of safety or one of its relevant specialties,
and has been registered or licensed by a state agency as a professional
appropriate to
his
the person's
field
of safety and health or has been certified as competent within the broad
practice of safety or health or one of its relevant specialties by an
organization recognized as qualified by the American society of safety
engineers or American industrial hygiene association.
2. Competent to deal with the planning, design and
needs of business operations as the use of such operations relates to the safe,
convenient and economic performance of their business functions, with not less
than three years' experience in an administrative capacity in the field of
occupational safety and health.
D. The salary of the
director
chief
shall be determined pursuant to section 38-611.
END_STATUTE
Sec.
6.
6. Section
23-408, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-408.
Inspection of places and practices of employment; closing
conference; prohibitions; employee initiation of investigation; violation;
classification; injunction
A. Except as prescribed in section 23-432,
subsection E, the
director
chief
of
the division
of occupational safety and health
, or the
director's
chief's
authorized
representative, on presentation of credentials, shall be
permitted
allowed
to inspect places of employment, question
employees and investigate conditions, practices or matters in connection with
employment subject to this article at reasonable times, as the
director
chief
or the
director's
chief's
authorized representative may deem appropriate to determine
whether any person has violated
any provision of
this
article or any rule or regulation issued pursuant to this article or that may
aid in the enforcement of this article. An employer or other person
shall not refuse to admit the
director
chief
or the
director's
chief's
authorized representatives to any place or refuse to
permit
allow
the inspection if the proper credentials are
presented and the inspection is made at a reasonable time.
B. In making inspections and investigations, the
director
chief
or the
director's
chief's
authorized representative may require the attendance
and testimony of witnesses and the production of evidence under oath.�
Witnesses shall be paid the same fees and mileage paid to witnesses in the
courts of this state. If any person fails or refuses to obey such an
order, the
director
chief
or the
director's
chief's
authorized
representative may apply to any superior court in any county where the person
is found, resides or transacts business for an order requiring the person to
produce evidence and to give testimony as ordered. Failure to obey
such an order is contempt of court.
C. The
director
chief
or the
director's
chief's
authorized representative shall inspect at least every six months any operation
that mixes rock, sand, gravel or similar materials with water and cement or
with asphalt and that is not included in the definition of mine in section 27-301. The
director
chief
or the
director's
chief's
authorized representative shall monitor and work with
the mine inspector only to the extent necessary to ensure this state's
compliance with federal occupational safety and health act standards
,
(P.L. 91-596).
D. Notice of an intended inspection shall not be
given to an employer before the time of actual entry on the workplace, except
by specific authorization by the
director
chief
.
E. A representative of the employer and a
representative authorized by the employer's employees shall be given an
opportunity to accompany the
director
chief
or the
director's
chief's
authorized
representative during the physical inspection of any workplace for the purpose
of aiding the inspection.
Where
If
there is no authorized employee representative, the
director
chief
or the
director's
chief's
authorized representative shall consult a reasonable number of
employees concerning matters of safety and health in the workplace.
F. The
director
chief
may not allow any individual to accompany a compliance safety and
health officer when conducting inspections for the
industrial
commission
of Arizona
pursuant to this section unless the
individual is any of the following:
1. An employee of the employer being inspected.
2. A safety consultant, attorney or other agent of
the employer or a person present with the consent of the employer.
3. The authorized employee
representative. For the purposes of this paragraph, "authorized
employee representative" means an agent of a labor organization that has a
collective bargaining relationship with the employer who represents employees
who are members of the collective bargaining unit.
4. A third party who is required by law to accompany
the compliance safety and health officer to ensure that the state plan is at
least as effective as the standards of the occupational safety and health act
of 1970 (P.L. 91-596; 84 Stat. 1590).
5. Otherwise required by law to be present.
G. The employer may require the following conditions
for a third party who accompanies a compliance safety and health officer during
an inspection pursuant to subsection F of this section:
1. That not more than one individual be present
unless otherwise required by law.
2. That the individual follow all workplace safety
rules regarding personal protective equipment applicable to all visitors for
the workplace.
3. That the individual
is required to
complete any safety trainings applicable to all visitors of the workplace.
4. That the individual sign a confidentiality
agreement with respect to the use of confidential information that is learned
during the inspection that has the same terms as required for other visitors.
5. That nonemployees, other than the compliance
safety and health officer,
are
be
prohibited from entering areas that contain trade secrets.� The compliance
safety and health officer may consult with a reasonable number of employees who
work in the identified trade secret area on matters of safety and health, even
if those employees are not joining the inspection.� Information obtained by the
commission or its representatives during the inspection that contains or that
may reveal a trade secret is subject to section 23-426.
H. Except as provided in section 23-426,
information and facts developed by the commission, the
director
chief
or any employee of the commission or division in the
course of any inspection or investigation are public records subject to
inspection pursuant to title 39, chapter 1, article 2, if, pursuant to section
23-415, subsection D, the inspection or investigation has been closed or
a citation has been issued. Such information and facts shall not be
admissible in any court or before any administrative body except pursuant to
this article.� Notwithstanding this subsection, the
director
chief
or any commission employee is not required to appear at
any deposition, trial or hearing concerning a division inspection or
investigation unless the appearance is related to a hearing held pursuant to
this article. Hearings held pursuant to this article are open to the
public.
I. During the inspection or investigation and in
deciding whether to recommend and issue a citation, the
director
chief
or the
director's
chief's
authorized representative and the commission may consider
whether an employee has committed misconduct by violating the employer's
policies, if any, regarding substance abuse while working, as evidenced by the
results of testing for substance abuse or other evidence of impairment while
working.
J. An employee of the division or the commission may
not:
1. Before, during or after an inspection or
investigation, communicate to an employer that the employer should not be
represented by an attorney or that the employer may be treated more favorably
by the division or the commission if the employer is not represented by an
attorney.
2. Conduct an audio recording of an oral statement
provided during an interview without the knowledge and consent of the person
being interviewed. The employee of the division or the commission
shall inform the person being interviewed of the person's right to receive a
copy of the recorded oral statement within a reasonable time.
3. Obtain a written statement during an interview
without informing the person of the person's right to receive a copy of the
written statement within a reasonable time.
K. An employee or a representative of employees who
believes that a violation of a safety or health standard or regulation exists
that threatens physical harm or that an imminent danger exists may request an
investigation by giving notice to the
director
chief
or the
director's
chief's
authorized representative of the violation or
danger. Any notice shall be in writing, set forth with reasonable
particularity the grounds for the notice and be signed by the employees or
representative of the employees. On the request of the employee
giving the notice, the employee's name and the names of other employees
referred to in the notice shall not appear on any copy of the notice or any
record published, released or made available. If on receipt of the
notice the
director
chief
determines
that there are reasonable grounds to believe that the violation or danger
exists, the
director
chief
shall
make an investigation in accordance with this article as soon as practicable to
determine if the violation or danger exists. If the
director
chief
determines there are no reasonable grounds to believe
that a violation or danger exists, the
director
chief
shall notify the employees or representative of the
employees in writing of the determination.
L. Any person who violates
any
provision of
this section is guilty of a class 2 misdemeanor.
M. The commission, or the commission's authorized
representative, in addition to initiating an action under subsection K of this
section, may file in the superior court in the county where the inspection was
refused a verified complaint against an employer who violates subsection A of
this section and request an injunction against continued refusal to
permit
allow
an inspection.
N. At least thirty days before the
industrial
commission
of Arizona
submits the state plan proposal or
proposed adoption to the United States occupational safety and health
administration, the commission shall submit the state plan proposal or proposed
adoption to the joint legislative audit committee, which may review and
recommend that the commission amend the state plan proposal or proposed
adoption.
END_STATUTE
Sec.
7.
7. Section
23-409, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-409.
Advisory committees
A. The commission shall create an occupational
safety and health advisory committee to assist the commission in drafting
standards and regulations. The committee may be asked to perform
other functions as may be necessary. The committee shall be
appointed by the commission and shall be composed of a reasonably balanced
representation of regulated industries, including agriculture, and labor and
other persons knowledgeable in safety and health and shall serve at the will of
the commission. The commission may establish other committees as it
deems necessary. The advisory committees may be paid their
reasonable and necessary travel and other expenses in accordance with standard
travel regulations.
B. The
director
chief
shall be an ex officio member of any advisory committee
established pursuant to this section.
END_STATUTE
Sec.
8.
8. Section
23-415, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-415.
Citations
A. If the
director
chief
, following an inspection or investigation determines
that there is reasonable cause to believe that
a
violation
exists
he
, the chief
shall with
reasonable promptness issue a citation to the employer. Each
citation shall be in writing and shall contain the following:
1. A particular description of the nature of the
violation, including a reference to the provision of this article, or of any
standard or regulation alleged to have been violated.
2. A reasonable time for the abatement of the
violation.
3. A notice that the employer may request a hearing
pursuant to section 23-420 if
he
the
employer
is aggrieved by the citation.
B. A certified mail delivery receipt or a signed
verification of delivery in person shall be prima facie evidence of receipt of
a citation.
C. Each citation issued under this section or a copy
or copies
thereof
of each citation
shall
be prominently posted at or near each place a violation referred to in the
citation existed.
D.
No
A
citation
may
not
be issued after the expiration of a period of six
months from the date of the inspection or investigation
which
that
produced evidence of the violation.
END_STATUTE
Sec.
9.
9. Section
23-417, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-417.
Enforcement procedure
A. If the
director
chief
, following an inspection or investigation, issues a
citation pursuant to section 23-415 the
director
chief
, within a reasonable time after termination of the
inspection or investigation, shall notify the employer by mail of any penalty
proposed to be assessed pursuant to section 23-418 and that the employer
has fifteen working days within which to notify the
director
chief
in writing if the employer wishes to contest the
citation or proposed assessment of penalty. If the employer fails to
notify the
director
chief
in writing
within fifteen working days
of
after
receipt
of the notice that the employer intends to contest the citation or penalty and
a notice is not filed by any employee or representative of employees pursuant
to subsection D of this section within such time, the citation and the
assessment, as proposed, shall be a final order of the commission and not subject
to review by any court or agency, except that the
director
chief
may excuse any late notification to contest a citation
only if the employer to whom the notice was sent shows by clear and convincing
evidence that the notice was not received.
B. The period allowed for correction of a violation
shall not begin to run until the entry of a final order in the case of any
review proceedings pursuant to this section initiated by the employer in good
faith and not solely for delay or avoidance of penalties. If the
division has reason to believe an employer has failed to correct a violation
for which a citation has been issued within the period allowed, the
director
chief
shall notify the employer
by mail of such failure, of the penalty proposed to be assessed pursuant to
section 23-418 and that the employer has fifteen working days within
which to notify the
director
chief
in writing if the employer wishes to contest the notification or proposed
assessment of penalty. If the employer fails to notify the
director
chief
in writing within fifteen
working days of receipt of the notice that the employer intends to contest the
notice or penalty, the notice and assessment, as proposed, shall be deemed a
final order of the commission and not subject to review by any court or agency.
C. Any employer who corrects the violations for
which a citation was issued within the period allowed shall so notify the
director
chief
in writing.
D. Any affected employee or employee representative
may request a hearing to appeal the period allowed an employer to abate a
particular violation pursuant to section 23-420 if the affected employee
or employee representative files the appeal with the
director
chief
within the abatement period allowed in the citation or
within fifteen days after the date of receipt of the citation, whichever is
shorter.
E. On a showing by an employer of a good faith
effort to comply with the abatement requirements of a citation, and that
abatement has not been completed because of factors beyond the reasonable
control of the employer, the commission or its authorized designee, after an
opportunity for a hearing as provided in section 23-420, shall issue an
order affirming or modifying the abatement requirements in such citation. The
rules of procedure prescribed by the commission shall provide affected
employees or representatives of affected employees an opportunity to
participate as parties to hearings under this subsection.
END_STATUTE
Sec.
10.
10. Section
23-418, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-418.
Penalties; violation; classification
A. Any employer who wilfully or repeatedly violates
the requirements of section 23-403 or any standard or regulation adopted
pursuant to section 23-410 or 23-414 or this article may be
assessed a civil penalty for each wilful violation of not more than the maximum
civil penalty, but not less than the minimum civil penalty, for wilful or
repeated violations adopted by the United States occupational safety and health
administration pursuant to the federal civil penalties inflation adjustment act
improvements act of 2015 (P.L. 114-74; 129 Stat. 599).
B. Any employer
who
that
has received a citation for a serious violation of this
article shall be assessed a civil penalty for each such violation of not more
than the maximum civil penalty for serious violations adopted by the United
States occupational safety and health administration pursuant to the federal
civil penalties inflation adjustment act improvements act of 2015
(P.L. 114-74; 129 Stat. 599).
C. Any employer that has received a citation for a
nonserious violation of this article may be assessed a civil penalty for each
such violation of not more than the maximum civil penalty for nonserious
violations adopted by the United States occupational safety and health
administration pursuant to the federal civil penalties inflation adjustment act
improvements act of 2015 (P.L. 114-74; 129 Stat. 599).
D. Any employer that fails to correct a violation
for which
period
a citation has been issued within the
abatement period allowed for its correction, which shall be suspended in case
of a review proceeding before an administrative law judge or the review board
initiated by the employer in good faith and not solely for delay or avoidance
of penalties, may be assessed a civil penalty of not more than the maximum
civil penalty for abatement violations adopted by the United States
occupational safety and health administration pursuant to the federal civil
penalties inflation adjustment act improvements act of 2015 (P.L. 114-74; 129
Stat. 599) for each day during which such failure or violation continues after
the abatement date.
E. Any employer that knowingly violates the
requirements of section 23-403 or any standard or regulation adopted
pursuant to section 23-410 or 23-414 or this article and that
violation causes death to an employee is guilty of a class 6 felony, except
that if the conviction is for a second or subsequent violation the employer is
guilty of a class 5 felony.
F. Any person who knowingly gives advance notice of
any inspection to be conducted under this article without authority from the
director
chief
is guilty of a class 2
misdemeanor.
G. A person who knowingly makes any false statement,
representation or certification in any application, record, report, plan or
other document filed or required to be maintained pursuant to this article is
guilty of a class 2 misdemeanor.
H. Any employer that violates any of the posting
requirements of this article shall be assessed a civil penalty for each
violation of not more than the maximum civil penalty for posting violations
adopted by the United States occupational safety and health administration
pursuant to the federal civil penalties inflation adjustment act improvements
act of 2015 (P.L. 114-74; 129 Stat. 599).
I. The commission shall have authority to assess all
civil penalties provided in this section, giving due consideration to the
appropriateness of the penalty with respect to the gravity of the violation,
the number of employees employed by the employer, the good faith of the
employer and the history of previous violations under this article.
J. Civil penalties owed under this article shall be
paid to the commission for deposit in the state general fund. After
an order or decision on a civil penalty becomes final pursuant to section 23-417,
23-421 or 23-423, the civil penalty shall act as a judgment against
the employer. The commission shall file the civil penalty in the
office of the clerk of the superior court in any county in this state and the
clerk shall enter the civil penalty in the civil order book and judgment
docket. When the civil penalty is filed and entered it is a lien for eight
years after the date of the final order or decision on the property of the
employer located in the county. Execution may issue on the civil
penalty within eight years in the same manner and with like effect as a
judgment of the superior court. The civil penalty judgment shall
accrue interest pursuant to section 44-1201. The commission
may recover reasonable attorney fees incurred pursuant to this section.
END_STATUTE
Sec.
11.
11. Section
23-423, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-423.
Review board rights and procedures; definition
A. A request for review to the review board shall be
filed with the commission within fifteen days after the date the decision was
mailed or
e-mailed
emailed
to
the parties and copies of the request shall be mailed to all other parties to
the proceeding before the administrative law judge.
For
the purposes of this section, "filed" means deposited in the United
States mail, postage prepaid or actually received by the commission.
B. The request for review shall state the grounds
for review and whether oral argument is requested.
C. When review has been requested, the record of
such oral proceedings at the hearing before the administrative law judge for
purposes of the review shall be transcribed at the expense of the party
requesting review. The record shall be certified to be true and
correct by the office of administrative hearings.
D. The board shall give the parties notice of review
by mail or
e-mail
email
.
E. If oral argument is requested, a hearing date
shall be established and notice of the hearing date will be sent with the
notice of review to the parties.
F. The review of the board shall be based on the
record submitted to it under subsection C of this section and such oral
argument as may be requested and received. If the board determines
that a case has been improperly, incompletely or otherwise insufficiently
developed or heard by the administrative law judge, it may remand the case to
the administrative law judge for further evidence taking, correction or other
necessary action.
G. The board may affirm, reverse, modify or
supplement the decision of the administrative law judge and make such
disposition of the case as it determines to be appropriate. The
board shall make a decision within thirty days after review has been submitted.
H. The decision of the board shall be filed with the
commission and a copy of the decision sent by mail or
e-mail
email
to the parties.� All decisions of the review board
shall be in writing.� Decisions of the review board shall be made by a majority
vote of the review board.� A decision of the review board is binding on the
director
chief
and the division with
respect to the parties involved in the particular appeal.� The
director
chief
shall have the right to seek judicial review of a review
board decision irrespective of whether or not the
director
chief
appeared or participated in the appeal to the review
board.
I. The decision of the board is final unless within
ten days after the date of service of copies of such decision on the parties,
one of the parties applies to the court of appeals for a writ of certiorari to
review the lawfulness of the decision. A copy of such application
shall be forthwith transmitted to the clerk of the court, to the review board,
to the commission and to the other parties and within ten days therefrom, the
commission shall certify the record, proceedings and evidence before the administrative
law judge and the review board to the court of appeals.� On such filing, the
court shall have jurisdiction of the proceedings and of the question determined
therein, and shall have power to make and enter on the pleadings, testimony and
proceedings set forth in such record a decree affirming, modifying or setting
aside in whole or in part, the order of the review board and enforcing the same
to the extent that such order is affirmed or modified. The
commencement of proceedings under this subsection does not, unless ordered by
the court, operate as a stay of the order of the review board. No
objection that has not been urged before the review board shall be considered
by the court, unless the failure or neglect to urge such objection shall be
excused because of extraordinary circumstances. The findings of the
review board with respect to questions of fact, if supported by substantial
evidence on the record considered as a whole, shall be
conclusive. If any party applies to the court for leave to adduce
additional evidence and shows to the satisfaction of the court that such
additional evidence is material and that there were reasonable grounds for the
failure to adduce such evidence in the hearing before the administrative law
judge, the court may order such additional evidence to be taken before the
administrative law judge and to be made a part of the
record. Petitions filed under this subsection shall be heard
expeditiously and the decision of the review board shall contain a statement of
this right of appeal.
J. For the purposes of this section,
"filed" means deposited in the United States mail, postage prepaid,
or actually received by the commission.
END_STATUTE
Sec.
12.
12. Section 23-426, Arizona Revised Statutes, is
amended to read:
START_STATUTE
23-426.
Confidentiality of trade secrets
All information reported to or
likewise obtained by the commission or its representatives in connection with
any inspection or investigation under this article
which
that
contains or
which
that
might reveal a trade secret shall be considered confidential for the
purpose of this article, except that such information may be disclosed to other
representatives of the division or commission concerned with carrying out this
article or when relevant in any proceeding under this article. In
any such proceeding, the
director
chief
,
the commission, the administrative law judge, the review board or the courts
shall issue orders as may be appropriate to protect the confidentiality of
trade secrets.
END_STATUTE
Sec.
13.
13. Section
23-428, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-428.
State legal representation
A. The office of the chief counsel of the industrial
commission of Arizona may appear for and represent the commission or the
director
chief
or
his
the chief's
authorized representative in any civil litigation
brought under this article.
B. In any criminal proceeding initiated under this
article, the office of the chief counsel of the industrial commission of
Arizona may appear for, represent and prosecute in the name of
the
this
state
of Arizona
.
END_STATUTE
Sec.
14.
14. Section
23-433, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-433.
Consulting program
A. The division shall develop a consulting program
utilizing
that uses
visits to the
workplace of employers to provide consultation and advice to such
employers. Such visits:
1. May be conducted only
upon
on
request by an employer for consultation and advice on the
interpretation or applicability of standards, possible alternative ways of
complying with applicable standards or other matters related to accident
prevention, occupational health or obligations pursuant to this article.
2. Shall be limited to matters specified in the
request.
B. If, after evaluating such request, the
director
chief
determines an alternative
means of providing consultation is more appropriate and equally effective,
he
the chief
may provide such alternative
means rather than consultation at the workplace.
C. The
director
chief
shall make recommendations regarding solutions to matters within
the scope of the workplace consultation.
D. No visit pursuant to this section shall be
regarded as an inspection or investigation pursuant to section 23-415. No
citation shall be issued nor shall any civil penalties be proposed
upon
on
such visit, except that
nothing in
this section
shall
does not
affect in any manner any provision of this article the
purpose of which is to eliminate imminent danger violations.
END_STATUTE
Sec.
15.
15. Section
23-471, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-471.
Definitions
In this article, unless the context otherwise requires:
1. "Authorized representative" means the
boiler chief and
boiler inspector employed by the division.
2. "Boiler" means a closed vessel in which
water or other liquid is heated, steam or vapor is generated or steam or vapor
is superheated, or any combination thereof, under pressure or vacuum for a use
that is external to itself, by the direct application of heat from the
combustion of fuels or from electricity.
3. "Certificate" means a certificate of
competency.
4. "Certificate inspection" means an
internal inspection, when construction permits, otherwise it means as complete
an inspection as possible.
5. "Chief" means the chief
of the division.
5.
6.
"Commission"
means the industrial commission of Arizona.
6. "Director" means the
director of the division of occupational safety and health.
7. "Division" means the
boiler
division of
occupational safety and health of
the
commission.
8. "Heating boilers" means a steam or
vapor boiler operating at a pressure not exceeding fifteen pounds per square
inch or a hot water boiler operating at a pressure not exceeding one hundred
sixty pounds per square inch or a temperature not exceeding two hundred fifty
degrees Fahrenheit.
9. "High temperature water boiler" means a
water boiler intended for operation at pressures in excess of one hundred sixty
pounds per square inch or temperatures in excess of two hundred fifty degrees
Fahrenheit.
10. "Interested party" means the
commission, agents of the commission and any owner or operator who has been
issued a notice of violation.
11. "Lined hot water heater" means a fired
lined water heater with linings providing corrosion resistance for supplying
potable hot water for commercial purposes. Lined hot water heaters
are exempted when none of the following limitations are exceeded:
(a) Heat input of two hundred thousand British
thermal units per hour.
(b) Water temperature of two hundred ten degrees
Fahrenheit.
(c) Nominal water-containing capacity of one
hundred twenty gallons.
12. "Owner" or "operator" means
any individual or type of organization, including this state and all political
subdivisions of this state, that has title to or controls, or has the duty to
control, the operation of one or more boilers, pressure vessels or lined hot
water heaters.
13. "Power boiler" means a boiler in which
steam or other vapor is generated at a pressure more than fifteen pounds per
square inch.
14. "Pressure vessel" means a container
for the containment of pressure, either internal or external.� The pressure may
be obtained from an external source, or by the application of heat from a
direct or indirect source, or any combination thereof.
15. "Process boiler" means a heating
boiler or a power boiler used for processing purposes where the make-up
water exceeds ten percent.
END_STATUTE
Sec.
16.
16. Section
23-474, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-474.
Duties of commission
The commission shall:
1. Administer this article through the
boiler
division
of occupational safety and health
.
2. Adopt standards and regulations pursuant to
section 23-475 and adopt other rules as are necessary.
3. Exercise other powers as are necessary to carry
out the duties and requirements of this article.
END_STATUTE
Sec.
17.
17. Section
23-477, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-477.
Notice requesting investigation
A. Any person may make a request for an
investigation by the division into alleged violations of section 23-473
by giving notice to the
director
chief
or
the
director's
chief's
authorized
representative of such violation or danger. Such notice shall be
reduced to writing, set forth with reasonable particularity the grounds for the
notice and be signed.
B. If
,
upon
on
receipt of such notification
,
the
director
chief
determines that
there are reasonable grounds to believe that such violation or danger exists,
the
director
chief
shall make an
investigation pursuant to this article as soon as practicable to determine if
such violation or danger exists. If the
director
chief
determines there are no reasonable grounds to believe
that a violation or danger exists, the
director
chief
shall notify the requesting party in writing of such
determination.
END_STATUTE
Sec.
18.
18. Section
23-478, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-478.
Enforcement
A. If the division, following an inspection or
investigation determines that there is reasonable cause to believe that there
exists a violation of a standard or regulation the division shall issue a
notice of violation directing any repairs, improvements, changes or additions
necessary to eliminate the hazard. Each notice of violation shall be
in writing, delivered either by mail or in person and shall contain the
following:
1. A particular description of the nature of the
violation, including a reference to the provision of this article or of any
standard or regulation alleged to have been violated.
2. A reasonable time for the abatement of the
violation.
B. Each notice of violation issued pursuant to this
section or a copy or copies of such notice of violation shall be prominently
posted at or near each place a violation referred to in the notice of violation
existed.
C. If in the opinion of the
director
chief
or the
director's
chief's
authorized representative the continued operation of the defective
boiler, pressure vessel or lined hot water heater constitutes an immediate
danger to the safety of the occupants of the establishment or the persons
operating such boiler, pressure vessel or lined hot water heater the
director
chief
or
director's
chief's
authorized representative may condemn such device and
require the boiler, pressure vessel or lined hot water heater to be returned to
a condition allowing safe operation before use of the boiler, pressure vessel
or lined hot water heater is resumed.
D. On failure of an owner or operator to comply with
either the requirements of a notice of violation issued pursuant to subsection
A of this section or condemnation pursuant to
this
subsection
C of this section
, the commission may file an
action in the superior court in the county where the violation occurred to
enjoin the owner or operator from engaging in further acts in violation of the
requirements of the notice of violation or the condemnation. Any
person found to be in contempt of an injunctive order of the court shall be
fined not less than
fifty
$50
nor
more than
three hundred dollars
$300
with
each day of violation constituting a separate contempt.
END_STATUTE
Sec.
19.
19. Section
23-491, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-491.
Definitions
In this article, unless the context otherwise requires:
1. "Authorized representative" means the
elevator chief and
elevator inspector employed by the division.
2. "Certificate" means a certificate of
inspection issued by the division.
3. "Chief" means the chief
of the division.
3.
4.
"Commission"
means the industrial commission of Arizona.
4.
5.
"Conveyance"
:
(
a
)
Means
an elevator, dumbwaiter, escalator, moving walk, manlift, personnel hoist,
material hoist, stage lift and special purpose personnel elevator
.
, excluding
(
b
) Does not
include
conveyances located at mines
and
that are
subject to regulation and inspection by the state mine
inspector pursuant to title 27, chapter 3.
5. "Director" means the
director of the division of occupational safety and health.
6. "Division" means the
elevator
division
of occupational safety and health
of the
industrial
commission.
7. "Dumbwaiter" means a hoisting and
lowering mechanism with a car of limited capacity and size that moves in guides
in a substantially vertical direction and that is used exclusively for carrying
material.
8. "Elevator" means a hoisting and
lowering mechanism equipped with a car or platform that moves in guides in
substantially vertical direction and that serves two or more floors of a
building or structure.
9. "Elevator company" means a person that
is engaged in the business of erecting, constructing, installing, altering,
servicing, repairing or maintaining conveyances.
10. "Escalator" means a
power
driven
power-driven
, inclined, continuous stairway
used for raising or lowering passengers.
11. "Interested party" means the
commission and its agents and the owner or operator who has been issued a
correction order.
12. "Manlift" means a device
consisting
that consists
of a
power driven
power-driven
endless belt
moving in one direction only and provided with steps or platforms and attached
handholds for the transportation of personnel from floor to floor.
13. "Material hoist" means a hoist for
raising and lowering materials only and prohibiting the hoisting of persons.
14. "Moving walk" means a type of
passenger carrying
passenger-carrying
device on which passengers stand or walk and in which the
passenger
carrying
passenger-carrying
surface remains
parallel to its direction of motion and is uninterrupted.
15. "Owner" or "operator"
:
(
a
)
Means
an individual or organization
,
including this state and
all political subdivisions of this state
,
who
that
has title to, controls or has the duty to control
the operation of one or more conveyances
.
,
but shall
(
b
) Does
not
include an individual or organization
that is
engaged in
mining or metallurgical operations
and
whose operation is
subject to regulation and inspection by the state mine inspector pursuant to
title 27, chapter 3.
16. "Personnel hoist"
:
(
a
)
Means
a mechanism
for use
that is used
in
connection with the construction, alteration, maintenance or demolition of a
building, structure or other work,
that is
used for
hoisting and lowering workers and materials and
that is
equipped
with a car that moves on guide members during its vertical movement.�
The term
(
b
)
Includes
a hoistway of a personnel hoist.
17. "Private elevator inspector" means an
individual who is authorized by the commission under section 23-491.16 to
conduct inspections under this article.
18. "Special purpose personnel elevator"
means a passenger,
hand powered
hand-powered
, counterweighted device or an
electric
powered
electric-powered
device that travels
vertically in guides and that serves two or more landings.
19. "Stage lift" means a hoisting and
lowering mechanism equipped with a platform that moves in guides in a
substantially vertical direction and that serves one or more landings.
END_STATUTE
Sec.
20.
20. Section
23-491.03, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-491.03.
Existing conveyances
Existing conveyances lawfully installed
prior to
before
the effective date of this article may continue in
use if the use is, in the opinion of the
director
chief
, not a hazard to life, health or property.
END_STATUTE
Sec.
21.
21. Section
23-491.04, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-491.04.
Commission powers and duties
A. The commission shall:
1. Administer this article through the division
of occupational safety and health
.
2.
Promulgate
Adopt
standards and regulations pursuant to section 23-491.06 as
required and
promulgate
adopt
such
other rules and regulations and exercise such other powers as are necessary to
carry out this article.
B. The commission, by rule and regulation, may set
fees not to exceed the actual cost for inspections performed pursuant to this
article.
END_STATUTE
Sec.
22.
22. Section
23-491.08, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-491.08.
Notice requesting investigation; confidentiality; determination
of grounds
A. Any person may make a request for an
investigation by the division into alleged violations of section 23-491.02
by giving notice to the
director
chief
or the
director's
chief's
authorized
representative of such violation or danger. Such notice shall be in
writing, shall set forth with reasonable particularity the grounds for the
notice and shall be signed by the person making the request.
Upon
On
the request of the person signing
the notice, such person's name shall not appear on any copy of such notice or
any record published, released or made available.
B. If
upon
on
receipt
of such notification the
director
chief
determines that there are reasonable grounds to believe that such violation or
danger exists, the
director
chief
shall make an investigation in accordance with
the provisions of
this article as soon as practicable to determine if such violation or danger
exists. If the
director
chief
determines there are no reasonable grounds to believe that a violation or
danger exists, the
director
chief
shall notify the requesting party in writing of such a determination.
END_STATUTE
Sec.
23.
23. Section
23-491.09, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-491.09.
Enforcement
A. If the division, following an inspection or
investigation, determines that there is reasonable cause to believe that there
is a violation of a standard or regulation, the division shall issue a
correction order directing any repairs, improvements, changes or additions
necessary to eliminate the hazard. Each correction order shall be in
writing, delivered either by mail or in person and shall contain the following:
1. A particular description of the nature of the
violation, including a reference to the provision of this article or of any
standard or regulation alleged to have been violated.
2. A reasonable time for the abatement of the
violation.
B. No correction order may be issued after the
expiration of a period of six months from the date of the inspection or
investigation
which
that
produced
evidence of the violation.
C. If
,
in the opinion of the
director
chief
or the
director's
chief's
authorized representative
,
the
continued operation of the defective device constitutes an immediate danger to
the safety of the persons operating or being conveyed by such device, the
director
chief
or the
director's
chief's
authorized representative may condemn such device and
require it to be returned to a condition allowing safe operation before its use
is resumed.
D.
Upon
On
failure
of an owner or operator to comply with either the requirements of a correction
order issued pursuant to subsection A
of this section
or
condemnation pursuant to
this
subsection
C
of this section
, the commission may file an action in the superior court
of
in
the county where the violation
occurred to enjoin the owner or operator from engaging in further acts in
violation of the requirements of the correction order or the
condemnation. Any person found to be in contempt of an injunctive order
of the court shall be fined not less than
fifty
$50
nor more than
three hundred dollars
$300
with each day of violation constituting a separate
contempt.
END_STATUTE
Sec.
24.
24. Section
23-1065, Arizona Revised Statutes, is amended to read:
START_STATUTE
23-1065.
Special fund; purposes; investment committee
A. The
industrial
commission
may direct the payment into the state treasury of not to exceed one percent of
all premiums received by private insurance carriers during the immediately
preceding calendar year.� The same percentage shall be assessed against self-insurers
based on the total cost to the self-insured employer as provided in
section 23-961, subsection G. Such assessments shall be
computed on the same premium basis as provided for in section 23-961,
subsections G, H, J, K and L and shall be
no
not
more than is necessary to keep the special fund actuarially
sound. Such payments shall be placed in a special fund within the
administrative fund to provide, at the discretion of the commission, such
additional awards as may be necessary to enable injured employees to accept the
benefits of any law of this state or of the United States, or both jointly, for
promotion of vocational rehabilitation of persons with disabilities in
industry.
B. In claims involving an employee who has a
preexisting
industrially-related
industrially
related
permanent physical impairment of the type specified in section
23-1044, subsection B and who thereafter suffers an additional permanent
physical impairment of the type specified in such subsection, the claim
involving the subsequent impairment is eligible for reimbursement, as provided
by subsection D of this section, according to the following:
1. The employer in whose employ the subsequent
impairment occurred or its insurance carrier is solely responsible for all
temporary disability compensation to which the employee is entitled and for an
amount equal to the permanent disability compensation provided by section 23-1044,
subsection B for the subsequent impairment. If the employee is
determined to have sustained no loss of earning capacity after the medically
stationary date, the employer or carrier shall pay
him
the employee
as a vocational rehabilitation bonus the amount
calculated under this paragraph as a lump sum, which shall be a credit against
any permanent compensation benefits awarded in any subsequent
proceeding. The amount of the vocational rehabilitation bonus for
which the employer or carrier is responsible under this paragraph shall be
calculated solely on physical, medically rated permanent impairment and not on
occupational or other factors.
2. If the commission determines that the employee is
entitled to compensation for loss of earning capacity under section 23-1044,
subsection C or permanent total disability under section 23-1045,
subsection B, the total amount of permanent benefits for which the employer or
carrier is solely responsible under paragraph 1 of this subsection shall be
expended first, with monthly payments made according to the loss of earning
capacity or permanent total disability award. The employer or
carrier and the special fund are equally responsible for the remaining amount
of compensation for loss of earning capacity under section 23-1044,
subsection C or permanent total disability under section 23-1045,
subsection B.� This paragraph
shall
does
not
be construed as requiring
require
payment
of any benefits under section 23-1044, subsection B in any case in which
an employee is entitled to benefits for loss of earning capacity under section
23-1044, subsection C or permanent total disability benefits under
section 23-1045, subsection B.
C. In claims involving an employee who has a
preexisting physical impairment that is not
industrially-related
industrially related
and, whether congenital or due to
injury or disease, is of such seriousness as to constitute a hindrance or
obstacle to employment or to obtaining reemployment if the employee becomes
unemployed, and the impairment equals or exceeds a ten percent permanent
impairment evaluated in accordance with the American medical association guides
to the evaluation of permanent impairment, and the employee thereafter suffers
an additional permanent impairment not of the type specified in section 23-1044,
subsection B, the claim involving the subsequent impairment is eligible for
reimbursement, as provided by subsection D of this section, under the following
conditions:
1. The employer in whose employ the subsequent
impairment occurred or its carrier is solely responsible for all temporary
disability compensation to which the employee is entitled.
2. The employer had knowledge of the permanent
impairment at the time the employee was hired, or that the employee continued
in employment after the employer acquired such knowledge.
3. The employee's preexisting impairment is due to
one or more of the following:
(a) Epilepsy.
(b) Diabetes.
(c) Cardiac disease.
(d) Arthritis.
(e) Amputated foot, leg, arm or hand.
(f) Loss of sight of one or both eyes or a partial
loss of uncorrected vision of more than seventy-five percent bilaterally.
(g) Residual disability from poliomyelitis.
(h) Cerebral palsy.
(i) Multiple sclerosis.
(j) Parkinson's disease.
(k) Cerebral vascular accident.
(l) Tuberculosis.
(m) Silicosis.
(n) Psychoneurotic disability following treatment in
a recognized medical or mental institution.
(o) Hemophilia.
(p) Chronic osteomyelitis.
(q) Hyperinsulinism.
(r) Muscular dystrophies.
(s) Arteriosclerosis.
(t) Thrombophlebitis.
(u) Varicose veins.
(v) Heavy metal poisoning.
(w) Ionizing radiation injury.
(x) Compressed air sequelae.
(y) Ruptured intervertebral disk.
4. The employer or carrier and the special fund are
equally responsible for the amount of compensation for loss of earning capacity
under section 23-1044, subsection C or permanent total disability under
section 23-1045, subsection B.
D. The employer or insurance carrier shall notify
the commission of its intent to claim reimbursement for an eligible claim under
subsection B or C of this section not later than the time the employer or
insurance carrier notifies the commission pursuant to section 23-1047,
subsection A.
Upon
On
receiving
notice the commission may expend funds from the special fund created by this
section for travel and discovery procedures and for the employment of such
independent legal, medical, rehabilitation, claims or labor market consultants
or experts as may be deemed necessary by the commission to assist in the
determination of the liability of the special fund, if any, under subsection B
or C of this section. In the event there is any dispute regarding
liability to the special fund pursuant to subsection B or C of this section,
the commission shall not delay the issuance of a permanent award pursuant to
section 23-1047, subsection B.
E. If the special fund created by this section is
determined to be liable under either subsection B or C of this section, the
employer or insurance carrier that is primarily liable shall pay the entire
amount of the award to the injured employee and the commission shall by rule
provide for the reimbursement of the employer or insurance carrier on an annual
basis.� In any case arising out of subsection B or C of this section, the
written approval of the special fund is required for the compromise of any claim
made pursuant to section 23-1023. In any such case, written
approval shall not be unreasonably withheld by the special fund, carrier, self-insured
employer or other person responsible for the payment of compensation.� Failure
to obtain the written approval of the special fund shall not cause the injured
worker to lose any benefits but ends the special fund's liability for
reimbursement and makes the employer or carrier solely responsible for the
payment of the remaining benefits.
F. The employer or insurance carrier shall make its
claim for reimbursement to the commission not later than November 1 each year,
for payments made pursuant to subsection B or C of this section during the
twelve months before October 1 each year. Claims shall be paid
before December 31 each year. If the total annual reserved
liabilities of the special fund obligated under subsections B and C of this
section exceed
six million dollars
$6,000,000
, as determined by the annual actuarial study performed pursuant
to subsection I of this section, the commission, after notice and a hearing,
may levy an additional assessment under subsection A of this section of up to
one-half percent to meet such liabilities. Any insurance
carrier or employer
who
that
may be
adversely affected by the additional assessment may at any time before the
sixtieth day after such additional assessment is ordered file a complaint
challenging the validity of the additional assessment in the superior court in
Maricopa county for a judicial review of the additional
assessment. On judicial review the determination of the commission
shall be upheld if supported by substantial evidence in the record considered
as a whole.
G. In the event the injured employee is awarded
additional compensation, under subsection A of this section, the commission
retains jurisdiction to amend, alter or change the award
upon
on
a change in the physical condition of the injured
employee resulting from the injury.
H. On receiving notice that the special fund may be
liable under this chapter, the commission may spend monies from the special
fund established by this section for expenses that are necessary to assist in
the processing, payment or determination of liability of the
fund. These expenses may include travel, discovery procedures and
employing any legal, medical, rehabilitation, claims or labor market
consultant, examiner or expert.
I. The commission shall cause an annual actuarial
study of the special award fund to be made by a qualified actuary who is a
member of the society of actuaries. The actuary shall make specific
recommendations for maintaining the fund on a sound actuarial basis.� The
actuarial study shall be completed on or before September 1.
J. The special fund of the commission consists of
all monies from premiums and assessments, except penalties assessed pursuant to
this chapter, received and paid into the fund, property and securities acquired
by the use of monies in the fund, interest earned on monies in the fund and
other monies derived from the sale, use or lease of properties belonging to the
fund. The special fund created by this section shall be administered
by the director of the
industrial
commission, subject to
the authority of the
industrial
commission.� The director
of the commission with approval of the investment committee, in the
administration of the special fund, may provide loans, subject to repayment,
budgetary review and legislative appropriation, to the administrative fund for
the purposes and subject to section 23-1081, acquire real property and
acquire or construct a building or other improvements on the real property as
may be necessary to house, contain, furnish, equip and maintain offices and
space for departmental and operational facilities of the
commission. The commission
,
when using space
constructed pursuant to this section
,
shall make equal
payments of rent on a semiannual basis, which shall be deposited in the special
fund. The investment committee shall determine the amount of the
rent, which must be at least equal to or greater than that determined by the
joint committee on capital review for buildings of similar design and
construction as provided by section 41-792.01.
K. There is established an investment committee
consisting of the director and the chairman of the commission and three persons
knowledgeable in investments and economics appointed by the
governor. Of the members appointed by the governor, one shall be a
professional in the investment business, one shall represent workers'
compensation insurers and one shall represent self-insurers. The
term of members appointed by the governor is three years, which shall begin on
July 1 and end on June 30 three years later. The committee shall
prescribe by rule investment policies and supervise the investment activities
of the special fund.
L. Each member of the investment committee, other
than the director of the commission, is eligible to receive from the special
fund:
1. Compensation of
fifty dollars
$50
for each day while in actual attendance at meetings
of the investment committee.
2. Reimbursement for expenses pursuant to title 38,
chapter 4, article 2.
M. The investment committee shall meet at least once
every month.
N. The investment committee shall periodically
review and assess the investment strategy.
O. The investment committee, by resolution, may
invest and reinvest the surplus or reserves in the funds established under this
chapter in any legal investments authorized under section 38-718.
P. In addition to the investments authorized under
section 38-718, the investment committee may approve the investment in
real property and improvements on real property to house and maintain offices
of the commission, including spaces for its departmental and operational
facilities.� Title to the real estate and improvements on the real estate vests
in the special fund of the commission, and the assets become part of the fund
as provided by this section.
Q. The investment committee may appoint a custodian
for the safekeeping of all or any portion of the investments owned by the
special fund of the commission and may register stocks, bonds and other
investments in the name of a nominee.� Except for investments held by a
custodian or in the name of a nominee, all securities purchased pursuant to
subsection O of this section shall promptly be deposited with the state
treasurer as custodian thereof, who shall collect the dividends, interest and principal
thereof, and pay, when collected, into the special fund. The state
treasurer shall pay all vouchers drawn for the purchase of
securities. The director may sell any of the securities as the
director deems appropriate, if authorized by resolution of the investment
committee, and the proceeds therefrom shall be payable to the state treasurer
for the account of the special fund
upon
on
delivery of the securities to the purchaser or the purchaser's agent.
END_STATUTE
Sec.
25.
25. Section 41-1005, Arizona Revised Statutes, is
amended to read:
START_STATUTE
41-1005.
Exemptions
A. This chapter does
not apply to any:
1. Rule that relates to the use of public works,
including streets and highways, under the jurisdiction of an agency if the
effect of the order is indicated to the public by means of signs or signals.
2. Order or rule of the Arizona game and fish
commission that does the following:
(a) Opens, closes or alters seasons or establishes
bag or possession limits for wildlife.
(b) Establishes a fee pursuant to section 5-321,
5-322 or 5-327.
(c) Establishes a license classification, fee or
application fee pursuant to title 17, chapter 3, article 2.
(d) Limits the number or use of licenses or permits
that are issued to nonresidents pursuant to section 17-332.
3. Rule relating to section 28-641 or to any
rule regulating motor vehicle operation that relates to speed, parking,
standing, stopping or passing enacted pursuant to title 28, chapter 3.
4. Rule concerning only the internal management of
an agency that does not directly and substantially affect the procedural or
substantive rights or duties of any segment of the public.
5. Rule that only establishes specific prices to be
charged for particular goods or services sold by an agency.
6. Rule concerning only the physical servicing,
maintenance or care of agency owned or operated facilities or property.
7. Rule or substantive policy statement concerning
inmates or committed youths of a correctional or detention facility in secure
custody or patients admitted to a hospital if made by the state department of
corrections, the department of juvenile corrections, the board of executive
clemency or the department of health services or a facility or hospital under
the jurisdiction of the state department of corrections, the department of
juvenile corrections or the department of health services.
8. Form whose contents or substantive requirements
are prescribed by rule or statute and instructions for the execution or use of
the form.
9. Capped fee-for-service schedule
adopted by the Arizona health care cost containment system administration
pursuant to title 36, chapter 29.
10. Fees prescribed by section 6-125.
11. Order of the director of water resources
adopting or modifying a management plan pursuant to title 45, chapter 2,
article 9.
12. Fees established under section 3-1086.
13. Fees established under sections 41-4010
and 41-4042.
14. Rule or other matter
relating to agency contracts.
15. Fees established
under section 32-2067 or 32-2132.
16. Rules made pursuant to section 5-111,
subsection A.
17. Rules made by the Arizona state parks board
concerning the operation of the Tonto natural bridge state park, the facilities
located in the Tonto natural bridge state park and the entrance fees to the
Tonto natural bridge state park.
18. Fees or charges established under section 41-511.05.
19. Emergency medical services protocols except as
provided in section 36-2205, subsection B.
20. Fee schedules established pursuant to section 36-3409.
21. Procedures of the state transportation board as
prescribed in section 28-7048.
22. Rules made by the state department of
corrections.
23. Fees prescribed pursuant to section 32-1527.
24. Rules made by the department of economic
security pursuant to section 46-805.
25. Schedule of fees prescribed by section 23-908
, except that the industrial commission of Arizona must post the
schedule of fees on its website and prepare and file a notice of public
information with the website address to be PUBLISHED in the register
.
26. Procedure that is established pursuant to title
23, chapter 6, article 6.
27. Rules, administrative policies, procedures and
guidelines adopted for any purpose by the Arizona commerce authority pursuant
to chapter 10 of this title if the authority provides, as appropriate under the
circumstances, for notice of an opportunity for comment on the proposed rules,
administrative policies, procedures and guidelines.
28. Rules made by a marketing commission or
marketing committee pursuant to section 3-414.
29. Administration of public assistance program
monies authorized for liabilities that are incurred for disasters declared
pursuant to sections 26-303 and 35-192.
30. User charges, tolls, fares, rents, advertising
and sponsorship charges, services charges or similar charges established
pursuant to section 28-7705.
31. Administration and implementation of the
hospital assessment pursuant to section 36-2901.08, except that the
Arizona health care cost containment system administration must provide notice
and an opportunity for public comment at least thirty days before establishing
or implementing the administration of the assessment.
32. Rules made by the Arizona department of
agriculture to adopt and implement the provisions of the federal milk ordinance
as prescribed by section 3-605.
33. Rules made by the Arizona department of
agriculture to adopt, implement and administer the United States food and drug
administration produce safety rule (21 Code of Federal Regulations part 112)
and any other federal produce safety regulation, order or guideline or other
requirement adopted pursuant to the FDA food safety modernization act (P.L.
111-353; 21 United States Code sections 2201 through 2252) as provided by title
3, chapter 3, article 4.1.
34. Calculations that are performed by the
department of economic security and that are associated with the adjustment of
the sliding fee scale and formula for determining child care assistance
pursuant to section 46-805.
35. Rules made by the Arizona department of
agriculture to implement and administer the livestock operator fire and flood
assistance grant program established by section 3-109.03.
B. Notwithstanding subsection A, paragraph 21 of
this section, if
the federal highway administration
authorizes the privatization of rest areas, the state transportation board
shall make rules governing the lease or license by the department of
transportation to a private entity for the purposes of privatization of a rest
area.
C. Coincident with
the
making
of
a final rule pursuant to an exemption from the applicability
of this chapter under this section, another statute or session law, the agency
shall:
1. Prepare a notice and follow formatting guidelines
prescribed by the secretary of state.
2. Prepare the rulemaking exemption
notices
notice
pursuant to chapter 6.2 of this title.
3. File
a copy of
the rule with
the secretary of state for publication pursuant to section 41-1012
and provide a copy to the council
.
4. Provide a copy of the rule to the
council.
D. Unless otherwise required by law, articles 2, 3,
4 and 5 of this chapter do not apply to the Arizona board of regents and the
institutions under its jurisdiction, except that the Arizona board of regents
shall make policies or rules for the board and the institutions under its
jurisdiction that provide, as appropriate under the circumstances, for notice
of and opportunity for comment on the policies or rules proposed.
E. Unless otherwise required by law, articles 2, 3,
4 and 5 of this chapter do not apply to the Arizona state schools for the deaf
and the blind, except that the board of directors of all the state schools for
the deaf and the blind shall adopt policies for the board and the schools under
its jurisdiction that provide, as appropriate under the circumstances, for
notice of and opportunity for comment on the policies proposed for adoption.
F. Unless otherwise required by law, articles 2, 3,
4 and 5 of this chapter do not apply to the state board of education, except
that the state board of education shall adopt policies or rules for the board
and the institutions under its jurisdiction that provide, as appropriate under
the circumstances, for notice of and opportunity for comment on the policies or
rules proposed for adoption.� In order to implement or change any rule, the
state board of education shall provide at least two opportunities for public
comment. The state board of education shall consider the fiscal
impact of any proposed rule pursuant to this subsection.
G. Unless otherwise required by law, articles 2, 3,
4 and 5 of this chapter do not apply to the state board for charter schools,
except that the board shall adopt policies or rules for the board and the
charter schools sponsored by the board that provide, as appropriate under the
circumstances, for notice of and opportunity for comment on the policies or
rules proposed for adoption. In order to implement or change any
policy or rule, the board shall provide at least two opportunities for public
comment. The state board for charter schools shall consider the
fiscal impact of any proposed rule pursuant to this subsection.
END_STATUTE