The proposed bill, HB2204, amends existing Arizona workers' compensation laws to allow insurance carriers to reduce premiums for employers by up to five percent if the employers are members of qualifying membership organizations. These organizations must consist of individuals in similar or related lines of commerce, be organized to improve business conditions, and not operate for profit. Additionally, the insurance carrier must have a program agreement with the membership organization.

Current law permits premium reductions for employers who comply with specific drug testing policies, but the new bill expands eligibility for premium reductions to include those associated with qualifying membership organizations. The bill also makes technical and conforming changes to existing statutes, ensuring that the new provisions align with the overall framework of Arizona's workers' compensation system. There is no anticipated fiscal impact on the state General Fund, but the Industrial Commission of Arizona may experience financial effects based on the number of insurance carriers and employers participating in these agreements.

Statutes affected:
Introduced Version: 20-343, 20-359, 20-367, 20-371
House Engrossed Version: 20-343, 20-359, 20-367, 20-371
Senate Engrossed Version: 23-902, 23-961, 23-1065, 23-961.01, 23-493.04, 23-901
Chaptered Version: 23-902, 23-961, 23-1065, 23-961.01, 23-493.04, 23-901