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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
board of supervisors; membership
(NOW: proof of insurance; workers' compensation)
As passed by the Senate, S.B. 1428 increased the size of a county board of supervisors in counties with a population between 1,000,000 and 3,000,000 persons to seven members and a population of more than 3,000,000 persons to nine members.
The House of Representatives adopted a strike-everything amendment that does the following:
Purpose
Establishes requirements for insurers and employers relating to workers' compensation zero estimated exposure policies.
Background
The Industrial Commission of Arizona is the state regulatory agency responsible for processing and adjudicating workers' compensation claims. All employers must secure workers' compensation for their employees in a manner prescribed by statute. Employees may receive workers’ compensation benefits, including medical treatment and lost wages, as a result of injuries or death caused by an accident arising out of and in the course of employment. The compensation received by the employee or the employee's dependents is determined by the employee's average monthly wage at the time of the injury (A.R.S. Title 23, Chapter 6).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires, if an insurer issues a zero estimated exposure policy, the zero estimated exposure policy to include a statement signed by the applicant that attests to the accuracy of the information provided in the application and that the applicant has no employees and an estimated exposure of zero.
2. Prescribes an attestation statement for an insurer that issues a zero estimated exposure policy.
3. Requires an employer that provides business construction and improvement services and obtains a zero estimated exposure policy to provide each contracted entity a copy of the policy and written notification that states that the employer has a total estimated exposure of zero.
4. Requires a contracted entity that receives a written notice from an employer to retain the notice and the policy for at least three years after receipt.
5. Requires a requested certificate of insurance, for a construction-related workers' compensation policy with zero estimated exposure, to contain a prescribed statement relating to confirming the status of the policy.
6. Defines zero estimated exposure policy as an insurance policy obtained by an employer to cover the employer's liability to pay compensation after the employer reports a total estimated exposure of zero.
7. Applies the regulations relating to zero estimated exposure policy for workers' compensation to any related certificates of insurance entered into or prepared on or after July 1, 2027.
8. Becomes effective on the general effective date.
Amendments Adopted by the House of Representatives
· Adopted the strike-everything amendment relating to workers' compensation zero estimated exposure policies.
House Action
APPROP 3/31/26 DPA/SE 17-0-0-2
3rd Read 6/12/26 56-0-4
Prepared by Senate Research
June 12, 2026
MG/hk