SB 1515 — industrial commission; revisions

TheNotwithstanding legislatureany shallother passlaw, the commission may protect from public inspection the financial information that is received from a billprivate entity that containsapplies theto emergencyself-insure clauseor that renews its self-insurance plan pursuant to section 23-961, subsection A if the legislatureinformation either:is kept confidential by the private entity in its ordinary and regular course of business.

Sec.

2.

Section 23-110, Arizona Revised Statutes, is amended to read:

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.

Sec.

3.

Section 23-401, Arizona Revised Statutes, is amended to read:

23-401.

Definitions In this article, unless the context otherwise requires:

Reduces"Board" themeans amounta forreview appropriationboard toestablished thepursuant budgetto stabilizationsection fund23-422. under subsection B of this section.

-2. 1 - S.B.

1515"CHIEF" 2.MEANS THE CHIEF OF THE DIVISION.

Increases2. the amount for transfer to the state general fund under subsection C of this section.

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.

- 2 - S.B.

1515 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 - 3 - S.B.

1515 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.

Sec.

4.

Section 23-405, Arizona Revised Statutes, is amended to read:

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.

Sec.

5.

Section 23-406, Arizona Revised Statutes, is amended to read:

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 - 4 - S.B.

1515 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.

Sec.

6.

Section 23-408, Arizona Revised Statutes, is amended to read:

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 - 5 - S.B.

1515 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.

TheA annualrepresentative budget recommendations of the governoremployer and thea jointrepresentative legislativeauthorized budgetby committeethe employer's employees shall includebe estimatesgiven ofan appropriationsopportunity to accompany the director CHIEF or transfersthe requireddirector's underCHIEF'S subsectionauthorized Brepresentative orduring Cthe physical inspection of thisany section.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.

AThe finaldirector determinationCHIEF ofmay thenot amountallow toany beindividual appropriated to oraccompany transferreda fromcompliance thesafety budgetand stabilizationhealth fundofficer shallwhen beconducting madeinspections usingfor personalthe incomeindustrial andcommission priceof deflatorArizona estimatespursuant asto reportedthis insection unless the secondindividual calendaris quarterany forof the precedingfollowing: calendar year.

The economic estimates commission shall determine the annual growth rate, the trend growth rate and the required appropriation to or transfer from the budget stabilization fund at its first meeting following the second calendar quarter report of the United States department of commerce, but not later than June 1.

TheAn commissionemployee shall certify and report its findings to the governor, the state treasurer, the president of the senate,employer thebeing speakerinspected. of the house of representatives and the joint legislative budget committee.

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.

The appropriationemployer calculatedmay pursuantrequire tothe subsectionfollowing Bconditions offor thisa sectionthird mayparty bewho includedaccompanies ina thecompliance generalsafety appropriationsand billhealth forofficer thatduring fiscalan year.inspection pursuant to subsection F of this section:

Any1. additional appropriation calculated pursuant to subsection F of this section shall be made by a separate act.

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.

- 6 - S.B.

1515 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.

AtExcept as provided in section 23-426, information and facts developed by the endcommission, the director CHIEF or any employee of athe fiscalcommission year,or division in the budgetcourse stabilizationof fundany balanceinspection shallor notinvestigation exceedare tenpublic percentrecords ofsubject stateto generalinspection fundpursuant revenueto fortitle 39, chapter 1, article 2, if, pursuant to section 23-415, subsection D, the fiscalinspection year.or investigation has been closed or a citation has been issued.

AnySuch surplusinformation moniesand abovefacts ten percent shall not be transferredadmissible byin theany statecourt treasureror tobefore theany stateadministrative generalbody fund.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.

TheDuring statethe treasurerinspection 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 temporarilyconsider divestwhether moniesan inemployee has committed misconduct by violating the budgetemployer's stabilizationpolicies, fundif toany, avoidregarding asubstance negativeabuse cashwhile balanceworking, inas operatingevidenced monies.by the results of testing for substance abuse or other evidence of impairment while working.

The amount divested shall not exceed the amount required to meet immediate cash needs.

The state treasurer may divest monies in the budget stabilization fund only when the state general fund has a negative cash balance.

ForAn employee of the purposesdivision ofor thisthe section:commission may not:

"AdjustedBefore, personalduring income"or meansafter personalan incomeinspection minusor transferinvestigation, payments,communicate asto reportedan employer that the employer should not be represented by an attorney or that the Unitedemployer Statesmay departmentbe oftreated commerce,more bureaufavorably ofby economicthe analysis,division or itsthe successorcommission agency.if the employer is not represented by an attorney.

"AnnualConduct growthan rate"audio meansrecording theof percentagean changeoral instatement realprovided adjustedduring personalan incomeinterview inwithout the calendarknowledge yearand endingconsent duringof a fiscal year as compared to real adjusted personal income for the precedingperson calendarbeing year.interviewed.

The annualemployee growthof ratethe division or the commission shall beinform roundedthe toperson being interviewed of the nearestperson's one-hundredthright to receive a copy of onethe percent.recorded oral statement within a reasonable time.

"GDPObtain pricea deflator"written meansstatement theduring grossan domesticinterview productwithout priceinforming deflatorthe reportedperson byof the Unitedperson's Statesright departmentto ofreceive commerce,a bureaucopy of economicthe analysis,written orstatement itswithin successora agency.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 - 7 - S.B.

1515 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.

Sec.

7.

Section 23-409, Arizona Revised Statutes, is amended to read:

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.

- 8 - S.B.

1515 Sec.

8.

Section 23-415, Arizona Revised Statutes, is amended to read:

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.

Sec.

9.

Section 23-417, Arizona Revised Statutes, is amended to read:

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 - 9 - S.B.

1515 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.

Sec.

10.

Section 23-418, Arizona Revised Statutes, is amended to read:

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 - 10 - S.B.

1515 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 - 11 - S.B.

1515 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.

Sec.

11.

Section 23-423, Arizona Revised Statutes, is amended to read:

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.

- 12 - S.B.

1515 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.

- 13 - S.B.

1515 Sec.

12.

Section 23-426, Arizona Revised Statutes, is amended to read:

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.

Sec.

13.

Section 23-428, Arizona Revised Statutes, is amended to read:

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.

Sec.

14.

Section 23-433, Arizona Revised Statutes, is amended to read:

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, - 14 - S.B.

1515 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.

Sec.

15.

Section 23-471, Arizona Revised Statutes, is amended to read:

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.

"Personal"Certificate income"inspection" means thean totalinternal personalinspection, incomewhen ofconstruction allpermits, personsotherwise init thismeans stateas reportedcomplete byan theinspection Unitedas Statespossible. department of commerce, bureau of economic analysis, or its successor agency.

-5. 2 - S.B.

1515"CHIEF" 5.MEANS THE CHIEF OF THE DIVISION.

"Real5. adjusted personal income" means an amount that is determined by dividing adjusted personal income by the GDP price deflator and multiplying the result by one hundred.

"Transfer"Commission" payments" means that portion of personal income that represents a government expenditure for which no service is rendered or product is delivered, as determined by the Unitedindustrial Statescommission department of commerce,Arizona. bureau of economic analysis, or its successor agency.

6.

"Director" means the director of the division of occupational safety and health.

"Trend"Division" growth rate" means the averageBOILER annualdivision growthof rateoccupational forsafety theand mosthealth recentof seven calendar years, rounded to the nearestcommission. one-hundredth of one percent.

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.

- 15 - S.B.

1515 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.

16.

Section 23-474, Arizona Revised Statutes, is amended to read:

23-474.

Duties of commission The commission shall:

1.

Administer this article through the BOILER division of occupational safety and health.

TitleAdopt 41,standards chapterand 11,regulations articlepursuant 1,to Arizonasection Revised23-475 Statutes,and isadopt amendedother byrules addingas sectionare 41-1610.02,necessary. to read:

41-1610.02.3.

PublicExercise safetyother paritypowers fundas A.are necessary to carry out the duties and requirements of this article.

THESec. PUBLIC SAFETY PARITY FUND IS ESTABLISHED TO PROVIDE RETENTION PAY AND BENEFITS FOR EMPLOYEES FROM THE DEPARTMENT OF PUBLIC SAFETY AND THE STATE DEPARTMENT OF CORRECTIONS.

THE17. FUND CONSISTS OF MONIES EARNED FROM INVESTMENT FROM THE BUDGET STABILIZATION FUND ESTABLISHED BY SECTION 35-144.

THESection STATE23-477, DEPARTMENTArizona OFRevised CORRECTIONSStatutes, SHALLis ADMINISTERamended THEto FUND.read:

MONIES23-477. IN THE FUND ARE SUBJECT TO LEGISLATIVE APPROPRIATION.

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.

BEGINNINGIf, JUNEupon 30,ON 2027receipt ANDof EACHsuch FISCALnotification, YEARthe THEREAFTER,director THECHIEF STATEdetermines DEPARTMENTthat OFthere CORRECTIONSare SHALLreasonable DEPOSIT,grounds PURSUANTto TObelieve SECTIONSthat 35-146such ANDviolation 35-147,or FORTYdanger PERCENTexists, OFthe THEdirector MONIESCHIEF DEPOSITEDshall INmake THEan PUBLICinvestigation SAFETYpursuant PARITYto FUNDthis ESTABLISHEDarticle BYas THISsoon SECTIONas INpracticable THEto PARITYdetermine COMPENSATIONif FUNDsuch ESTABLISHEDviolation BYor SECTIONdanger 41-1720.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.

Sec.

18.

Section 23-478, Arizona Revised Statutes, is amended to read:

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 - 16 - S.B.

1515 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.

INIf DETERMININGin THEthe AMOUNTopinion OFof THEthe EXPENDITURESdirector FROMCHIEF THEor FUND,the THEdirector's STATECHIEF'S DEPARTMENTauthorized OFrepresentative CORRECTIONSthe SHALLcontinued ANNUALLYoperation ESTABLISHof ANDthe CONSIDERdefective BENCHMARKSboiler, BASEDpressure ONvessel THEor AVERAGElined TOTALhot COMPENSATIONwater FORheater EACHconstitutes COMPARABLEan CORRECTIONSimmediate PERSONNELdanger RANKto OFthe THEsafety TWOof LARGESTthe COUNTYoccupants JAILSof INthe THISestablishment STATEor ANDthe THEpersons TWOoperating LARGESTsuch PRIVATEboiler, PRISONSpressure INvessel THISor STATE.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.

THEOn STATEfailure DEPARTMENTof 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 CORRECTIONSTHIS SHALLSECTION, DISTRIBUTEthe THEcommission MONIESmay INfile THEan FUNDaction ONin JULYthe 1superior ANDcourt DECEMBERin 31the EACHcounty YEAR.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.

THEAny STATEperson DEPARTMENTfound OFto CORRECTIONSbe MAYin PROVIDEcontempt Aof RETENTIONan BONUSinjunctive TOorder DEPARTMENTof EMPLOYEESthe OFcourt NOTshall MOREbe THANfined THREEnot PERCENTless FROMthan FUNDfifty MONIES.$50 nor more than three hundred dollars $300 with each day of violation constituting a separate contempt.

19.

Section 23-491, Arizona Revised Statutes, is amended to read:

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.

Section"CHIEF" 41-1720,MEANS ArizonaTHE RevisedCHIEF Statutes,OF isTHE amendedDIVISION. to read:

41-1720.3.

Parity4. compensation fund A.

The"Commission" paritymeans compensationthe fundindustrial iscommission established consisting of moniesArizona. deposited pursuant to section SECTIONS 28-5808 AND 41-1610.02 and monies appropriated by the legislature.

The4. department shall administer the fund and, considering state revenues and state employee pay adjustments, .

The5. department shall spend monies from the fund TO PROVIDE RETENTION PAY AND BENEFITS FOR EMPLOYEES FROM THE DEPARTMENT AND for salaries and benefits for law enforcement personnel that the department determines will enhance the ability of the department to successfully recruit and retain qualified - 3 - S.B.

1515"Conveyance": law enforcement personnel.

In(a) determiningMeans thean amountelevator, ofdumbwaiter, theescalator, expendituresmoving fromwalk, themanlift, fund,personnel thehoist, departmentmaterial shallhoist, annuallystage establishlift and considerspecial benchmarkspurpose based on the average total compensation for each comparable law enforcement personnel rankelevator. of the department's three largest county or municipal peer law enforcement agencies in this state.

For, theexcluding purposes- of17 this- subsection,S.B. "total compensation" includes base salary, educational incentive pay, physical performance pay, longevity pay and retirement contributions made by an employer on behalf of an employee.

1515 (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.