Arizona HB 2349: auxiliary containers; regulation prohibition; repeal

Bill Text

HB2349 - 572R - I Ver 

 REFERENCE TITLE: employment; rural fire districts; exception

 State of Arizona

 House of Representatives

 Fifty-seventh Legislature

 Second Regular Session

 2026

 HB 2349

 Introduced by 

 Representatives 
 Diaz: Gillette, Heap

AN 
ACT

amending section 23-902, arizona 
revised statutes; relating to workers' compensation.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 23-902, Arizona Revised 
Statutes, is amended to read:

START_STATUTE23-902. Employers subject to chapter; exceptions

A. Employers subject to this chapter are the this state, each county, city, town, 
municipal corporation and school district and every person who employs any 
workers or operatives regularly employed in the same business or establishment 
under contract of hire, including covered employees pursuant to a professional 
employer agreement, except domestic servants and rural fire 
districts that are located in a county with a population of less than one 
million persons. Exempted employers of domestic servants may come 
under this chapter by complying with its provisions and the rules of the 
commission. For the purposes of this subsection, "regularly 
employed" includes all employments, whether continuous throughout the year, or for only a portion of the year, in the usual trade, 
business, profession or occupation of an employer.

B. When an employer procures work to be done for the 
employer by a contractor over whose work the employer retains supervision or 
control, and the work is a part or process in the 
trade or business of the employer, then the contractors 
and the contractor's employees, and any 
subcontractor and the subcontractor's employees, are, 
within the meaning of this section, are employees of the 
original employer.� For the purposes of this subsection, "part or process 
in the trade or business of the employer" means a particular work activity 
that in the context of an ongoing and integral business process is regular, 
ordinary or routine in the operation of the business or is routinely done 
through the business' business's own 
employees.

C. A person engaged in work for a business, and who 
while so engaged is independent of that business in the execution of the work 
and not subject to the rule or control of the business for which the work is 
done, but is engaged only in the performance of a definite job or piece of 
work, and is subordinate to that business only in effecting a result in 
accordance with that business design, is an independent contractor.

D. A business that uses the services of an 
independent contractor and the independent contractor may prove the existence 
of an independent contractor relationship by executing a written agreement that 
complies with this subsection. The written agreement shall evidence 
that the business does not have the authority to supervise or control the 
actual work of the independent contractor or the independent contractor's 
employees. A written agreement executed in compliance with this 
subsection creates a rebuttable presumption of an independent contractor 
relationship between the parties if the written agreement contains a disclosure 
statement that the independent contractor is not entitled to workers' 
compensation benefits from the business. Unless the rebuttable 
presumption is overcome, no premium may be collected by the carrier on payments 
by the business to the independent contractor if a fully completed written 
agreement that satisfies the requirements of this subsection is submitted to 
the carrier.� The written agreement shall be dated and contain the signatures 
of both parties and, unless otherwise provided by law, shall state that the 
business:

1. Does not require the independent contractor to 
perform work exclusively for the business. This paragraph shall is not be construed as 
conclusive evidence that an individual who performs services primarily or 
exclusively for another person is an employee of that person. 

2. Does not provide the independent contractor with 
any business registrations or licenses required to perform the specific 
services set forth in the contract.

3. Does not pay the independent contractor a salary 
or hourly rate instead of an amount fixed by contract.

4. Will not terminate the independent contractor 
before the expiration of the contract period, unless 
the independent contractor breaches the contract or violates the laws of this 
state.

5. Does not provide tools to the independent 
contractor.

6. Does not dictate the time of performance.

7. Pays the independent contractor in the name 
appearing on the written agreement.

8. Will not combine business operations with the person 
performing the services rather than maintaining these operations separately.

E. A business that uses the services of a sole 
proprietor who has waived the sole proprietor's rights to workers' compensation 
coverage and benef