Arizona Border Security and Community Recovery Act
AN ACT
to be known as the Arizona Border Security and Community Recovery Act; establishing the Arizona Community Safety and Recovery Initiative; amending Titles 13, 23, and 36, Arizona Revised Statutes; relating to border security enhancement, drug demand reduction, criminal labor practices enforcement, regulated labor contracting, and behavioral health workforce development.
Be it enacted by the Legislature of the State of Arizona:
TITLE 36 AMENDMENTS – STATEWIDE BORDER RECOVERY INITIATIVE
Section 1. Title 36, Arizona Revised Statutes, is amended by adding Chapter 40, to be designated as sections 36-4101 through 36-4113, to read:
CHAPTER 40. STATEWIDE BORDER RECOVERY INITIATIVE
36-4101. Definitions
In this chapter, unless the context otherwise requires:
1. "Behavioral health crisis" means a situation in which an individual is experiencing a mental health or substance use disorder episode that severely impairs their judgment, behavior or ability to function in the community, and which may result in a risk of harm to self or others.
2. "Border-impacted county" means any county designated by the commission pursuant to section 36-4102, subsection D.
3. "Commission" means the Arizona Border Recovery and Public Safety Commission established by section 36-4102.
4. "Evidence-based treatment" means substance use disorder and mental health disorder interventions that are based on scientific evidence of effectiveness, including but not limited to medication-assisted treatment, cognitive behavioral therapy, contingency management and peer support services.
5. "Long-term rehabilitation center" means a state-operated, non-carceral residential facility providing evidence-based treatment for substance use disorders for a period of six months to two years.
6. "Mental health recovery center" means a state-operated, non-carceral residential facility providing comprehensive, evidence-based treatment and stabilization for individuals with severe mental health disorders, co-occurring substance use disorders or who are in a behavioral health crisis, as an alternative to incarceration or hospitalization.
7. "Mobile health clinic" means a self-contained, transportable medical unit capable of providing clinical services, including addiction prevention, treatment, mental health services and recovery services.
8. "Program maturity" means the point at which a program has been fully implemented for sufficient time to produce measurable outcomes, defined as three years of continuous operation at full staffing and service capacity.
9. "Rural infrastructure deficiencies" means limitations in broadband internet access, healthcare facility capacity, transportation networks, utility reliability, or educational or training facilities that impede service delivery in rural counties.
10. "Tiered county system" means the classification system established by the commission pursuant to section 36-4102, subsection D.
36-4102. Arizona Border Recovery and Public Safety Commission; membership; duties
A. The Arizona Border Recovery and Public Safety Commission is established consisting of:
1. The director of the Arizona department of health services or the director's designee.
2. The director of the Arizona health care cost containment system or the director's designee.
3. One sheriff from a county that borders Mexico, one sheriff from a rural county not bordering Mexico, and one sheriff from an urban county, appointed by the Arizona Sheriffs' Association.
4. Two physicians licensed in this state with experience in addiction medicine or psychiatry, one appointed by the Arizona Medical Association and one appointed by the Arizona Psychiatric Society.
5. Two representatives from recovery organizations, one from a faith-based organization and one from a peer-led organization, appointed by the governor.
6. Two members of the public, one appointed by the president of the senate and one appointed by the speaker of the house of representatives.
B. The commission shall:
1. Develop and implement the statewide border recovery initiative through a phased, five-year implementation plan as outlined in section 36-4112, prioritizing the disruption of cartel-driven addiction and the restoration of community safety.
2. Deploy mobile health clinics to tier 1 border-impacted counties within eighteen months of the effective date of this chapter.
3. Establish and operate long-term rehabilitation centers beginning with tier 1 counties within thirty-six months and expanding to tier 2 counties by year five pursuant to section 36-4105.
4. Establish and operate mental health recovery centers beginning with tier 1 counties within forty-two months and expanding to tier 2 counties by year six pursuant to section 36-4108.
5. Prioritize services for fentanyl and methamphetamine addiction prevention, reversal and long-term treatment, recognizing these as the primary narcotics driving the border-related overdose crisis.
6. Coordinate with local law enforcement, health departments, treatment providers and the judiciary statewide to create a unified front against the public health consequences of border-related narcotics trafficking.
7. Develop standards for judicial diversion to treatment in coordination with the Arizona supreme court, with pilot programs in tier 1 counties beginning in year two.
8. Establish and maintain the Arizona Behavioral Health Workforce Recruitment Office pursuant to section 36-4111, beginning recruitment and training pipeline development immediately on enactment.
9. Develop and implement a Rural Infrastructure Improvement Plan pursuant to section 36-4112 to address deficiencies impeding service delivery in tier 1 and tier 2 counties.
10. Coordinate with the Arizona department of transportation, Arizona department of housing, Arizona commerce authority and rural electric cooperatives to align infrastructure improvements with service delivery timelines.
11. Implement sunset and reauthorization timelines as specified in section 36-4113 to ensure program evaluation occurs after achieving maturity.
C. The commission shall meet at least quarterly, with no fewer than two meetings per year held in a county that borders Mexico.
D. Within sixty days after its establishment, the commission shall designate tiered border-impacted counties based on objective data including overdose mortality rates, narcotics seizure data, substance use disorder prevalence, mental health crisis incidents, treatment access gaps and economic distress indices, including unemployment, poverty and median income. Counties shall be categorized as:
1. Tier 1: Counties with the highest overdose mortality rates, being greater than one hundred fifty per cent of the state average, lowest treatment access, being less than one provider per ten thousand residents, highest poverty rates, being greater than twenty-five per cent, and geographic isolation.
2. Tier 2: Counties with moderate-high needs, being one hundred to one hundred fifty per cent of the state average mortality and moderate treatment gaps.
3. Tier 3: All other counties.
36-4103. Mobile health clinic services; requirements
A. Mobile health clinics deployed pursuant to this chapter shall provide:
1. Addiction prevention education and screening, with specific focus on fentanyl and methamphetamine risks.
2. Mental health crisis screening and stabilization.
3. Naloxone distribution and overdose response training.
4. Medication-assisted treatment for substance use disorders.
5. Assessment and referral to appropriate treatment levels, including long-term rehabilitation centers and mental health recovery centers.
6. Basic primary care and behavioral health services.
B. Services shall be provided at no cost to Arizona residents in tier 1 and tier 2 counties during the phased implementation period.
C. Phase I deployment, months one through eighteen: Clinics shall operate in tier 1 counties in coordination with county sheriffs and local health departments to ensure security and community access. Phase II deployment, months nineteen through thirty-six: Expand to tier 2 counties.
36-4104. Judicial diversion to treatment and stabilization
A. Notwithstanding any other law, any person charged with a nonviolent misdemeanor or low-level felony offense where the court finds, based on a clinical assessment, that the alleged conduct was primarily caused by a substance use disorder, mental health disorder or co-occurring disorders, may petition the court for diversion to a long-term rehabilitation center, a mental health recovery center or other approved treatment program.
B. On successful completion of the rehabilitation or recovery program, the court shall dismiss the charges with prejudice.
C. The commission shall develop statewide standards for judicial referral in coordination with the Arizona supreme court and the administrative office of the courts, with implementation beginning in tier 1 county courts in year two, expanding statewide by year five.
36-4105. Establishment of long-term rehabilitation centers
A. The commission shall establish and operate long-term rehabilitation centers according to the following timeline:
1. First center in a tier 1 border county within thirty-six months of the effective date of this chapter.
2. First center in a tier 1 rural non-border county within forty-two months.
3. Additional centers in tier 2 counties within sixty months.
4. Assessment of need for tier 3 centers by month seventy-two.
B. Each center shall:
1. Provide evidence-based treatment, including medication-assisted treatment, individual and group therapy, vocational training and life skills education.
2. Operate on a voluntary admission basis, with priority given to Arizona residents referred through mobile clinics, the judiciary or law enforcement.
3. Be staffed by licensed medical professionals, certified addiction counselors and peer support specialists.
4. Provide a secure, therapeutic environment that is distinct in appearance and function from a correctional facility.
5. Develop individualized aftercare plans including housing assistance, continued outpatient care and employment support.
C. Admission to a center does not constitute a conviction or incarceration, and residents retain all civil rights not specifically limited for treatment purposes.
D. The commission shall ensure geographic equity in service delivery, with priority given to tier 1 counties during the first five years.
36-4106. Funding and public-private partnerships
A. The initiative shall be funded through annual legislative appropriations, federal grants, including medicaid reimbursement for eligible services, and private donations.
B. The commission may enter into public-private partnerships with nonprofit organizations, tribal nations and accredited treatment providers to operate centers, subject to state oversight and quality standards.
C. The commission shall pursue medicaid reimbursement and private insurance coverage for treatment services where applicable.
36-4107. Staffing standards for funded facilities
A. The commission shall adopt rules establishing minimum staffing ratios with the following implementation schedule:
1. Phase 1, years one through three: Develop ratios based on national standards and Arizona-specific needs assessments conducted in months one through twelve.
2. Phase 2, years three through five: Implement ratios in tier 1 facilities as they come online, with conditional staffing waivers allowed for up to twenty-four months while recruitment and training pipelines are established.
3. Phase 3, year five and later: Full implementation across all facilities.
B. As a condition of receiving and retaining state funds under this chapter, any public or private operator of a facility must:
1. Within six months of operation: Achieve eighty per cent of minimum staffing ratios.
2. Within twenty-four months of operation: Achieve one hundred per cent of minimum staffing ratios or demonstrate active participation in the training pipeline programs established in section 36-4111.
C. The commission may conduct unannounced audits to verify staffing compliance.
D. If a facility remains out of compliance for more than ninety days, the commission shall suspend further disbursement of state funds until compliance is restored. For facilities serving vulnerable populations, the commission may appoint a temporary manager to ensure continuity of care during the suspension.
E. The commission may grant extended conditional waivers from specific ratios for facilities in tier 1 counties demonstrating participation in workforce development programs, provided patient safety is maintained through alternative staffing models.
36-4108. Establishment of mental health recovery centers
A. The commission shall establish and operate mental health recovery centers according to the following timeline:
1. First center in a tier 1 border county within forty-two months of the effective date of this chapter.
2. First center in a tier 1 rural non-border county within forty-eight months.
3. Additional centers in tier 2 counties by month seventy-two.
B. Each center shall:
1. Provide comprehensive, evidence-based treatment including psychiatric care, medication management, trauma-informed therapy and psychosocial rehabilitation.
2. Operate as a voluntary, alternative-to-incarceration and alternative-to-hospitalization facility. Priority admission shall be given to Arizona residents referred through:
(a) The judiciary pursuant to section 36-4104.
(b) Law enforcement or mobile crisis units as an alternative to arrest or emergency detention.
(c) Hospital emergency departments for step-down stabilization.
3. Be staffed by multidisciplinary teams including psychiatrists, psychologists, licensed clinical social workers, psychiatric nurses, certified peer support specialists and case managers.
4. Provide a secure, therapeutic and homelike environment that is distinct in appearance and function from a correctional or institutional facility.
5. Develop individualized discharge and aftercare plans in coordination with community-based providers, including assistance with housing, benefits and continued outpatient care.
C. Admission to a center does not constitute a conviction or incarceration. Residents retain all civil rights not specifically limited for clinical and safety purposes pursuant to individualized treatment plans.
36-4109. Reporting requirements
The commission shall report semiannually to the governor and the legislature on:
1. Progress against phased implementation milestones.
2. The number of individuals served through mobile clinics and rehabilitation centers, disaggregated by county tier and border-impact status.
3. The types of services provided and treatment outcomes.
4. The quantities of naloxone distributed and reported overdose reversals.
5. Success rates for judicial diversion participants.
6. Reductions in emergency room visits, arrests and incarceration costs related to substance abuse and mental health crises statewide, with specific focus on tier 1 counties.
7. Economic impact, including cost savings from reduced law enforcement, corrections and hospitalization expenditures.
8. Progress toward geographic equity in service delivery, particularly in tier 1 border and rural regions.
9. Data on diversion from incarceration and hospitalization via mental health recovery centers, including the number of individuals served, length of stay and post-discharge outcomes.
10. Workforce pipeline development metrics including training program enrollment, completion rates and placement in tier 1 counties.
11. Staffing compliance and workforce recruitment outcomes as required by section 36-4111.
12. Reassessment of feasibility and cost projections based on actual implementation experience.
13. Rural infrastructure improvement progress as required by section 36-4112.
36-4110. Rulemaking
The commission may adopt rules necessary to carry out the provisions of this chapter.
36-4111. Arizona Behavioral Health Workforce Recruitment Office
A. The Arizona Behavioral Health Workforce Recruitment Office is established within the commission to develop training pipelines and actively recruit behavioral health professionals for positions in facilities funded under this chapter.
B. The office shall:
1. Immediate actions, months one through twelve:
(a) Establish partnerships with Arizona community colleges, universities and tribal colleges to create or expand two-year certification programs for behavioral health technicians, peer support specialists and addiction counselors.
(b) Develop twelve-month accelerated training programs for professionals in related fields, including nurses, social workers and veterans, to transition into behavioral health.
(c) Launch "Grow Your Own" programs in tier 1 counties to train local residents for entry-level positions.
2. Medium-term actions, months thirteen through thirty-six:
(a) Conduct national and international recruitment campaigns targeting psychiatrists, addiction medicine specialists, psychiatric nurse practitioners, clinical psychologists, licensed clinical social workers, licensed professional counselors and certified addiction counselors.
(b) Develop and administer a loan repayment assistance program for behavioral health professionals who commit to five or more years of service in tier 1 county facilities, with enhanced benefits for service in rural or border counties.
(c) Establish interstate license reciprocity agreements to expedite Arizona licensure for professionals licensed in other states with equivalent standards.
(d) Partner with the Arizona board of medicine, Arizona board of nursing and Arizona board of behavioral health examiners to create expedited temporary licensing pathways for recruited specialists.
3. Long-term actions, month thirty-seven and later:
(a) Provide relocation assistance, including housing stipends and moving cost reimbursement, for specialists recruited to rural or border regions.
(b) Develop international recruitment pathways, including state sponsorship support for EB-2 National Interest Waiver visas for qualifying specialists.
(c) Create clinical faculty affiliations with Arizona universities to attract specialists interested in teaching and research opportunities.
4. Coordinate with the Rural Infrastructure Improvement Office established in section 36-4112 to ensure training facilities meet program needs in tier 1 and tier 2 counties.
5. Develop telehealth training protocols for providers in areas with limited broadband access during infrastructure development phases.
6. Create mobile training units that can deploy to rural communities while permanent facilities are being developed.
7. Track recruitment outcomes and retention rates by specialty and region, reporting quarterly to the commission.
C. The office shall prioritize training pipeline development in years one through three with the goal of producing three hundred or more certified behavioral health professionals annually by year three, with fifty per cent placement commitment to tier 1 counties.
D. Funding for the office shall be allocated from the commission's annual appropriation, with no less than forty per cent of year one through three funding dedicated to infrastructure-enabled training delivery and no less than sixty per cent of year one through two funding dedicated to training pipeline development.
36-4112. Rural Infrastructure Improvement Plan and Office
A. Rural Infrastructure Improvement Office: There is established within the commission the Rural Infrastructure Improvement Office to coordinate infrastructure development necessary for program implementation.
B. Infrastructure Assessment: Within ninety days of enactment, the office shall conduct and complete an assessment of rural infrastructure deficiencies in all tier 1 and tier 2 counties, focusing on:
1. Broadband internet access and reliability.
2. Healthcare facility capacity and condition.
3. Transportation network adequacy for service delivery.
4. Housing availability for workforce recruitment.
5. Utility reliability, including power, water and wastewater.
6. Educational and training facility capacity.
C. Phased Improvement Plan: The office shall develop and implement a phased improvement plan with the following timeline:
1. Phase 1, years one through two: Critical immediate improvements:
(a) Deploy mobile broadband units to tier 1 counties lacking telehealth capacity.
(b) Establish satellite training facilities in partnership with existing community centers.
(c) Upgrade electrical and water infrastructure at identified facility sites.
(d) Develop temporary housing solutions for initial workforce recruitment.
2. Phase 2, years three through five: Medium-term infrastructure:
(a) Construct permanent broadband infrastructure in tier 1 counties.
(b) Renovate or expand existing healthcare facilities for integrated service delivery.
(c) Improve transportation access to identified service locations.
(d) Develop workforce housing in partnership with local governments.
3. Phase 3, years six through eight: Long-term sustainable infrastructure:
(a) Complete comprehensive broadband coverage in all tier 1 and tier 2 counties.
(b) Construct dedicated training and service facilities where needed.
(c) Establish sustainable utility and maintenance partnerships.
(d) Transition mobile units to backup or emergency capacity.
D. Coordination with Existing Programs: The office shall coordinate with and leverage:
1. Federal broadband expansion programs, including BEAD and ReConnect.
2. USDA Rural Development programs.
3. Arizona commerce authority rural development initiatives.
4. Tribal infrastructure programs where applicable.
E. Funding Prioritization: Infrastructure improvements shall be prioritized based on:
1. Impact on service delivery timelines.
2. Economic multiplier effect for rural communities.
3. Leverage of existing or federal funding.
4. Geographic equity across tier 1 counties.
36-4113. Sunset and Reauthorization Provisions
A. Program Components and Sunsets: The following provisions of this chapter shall sunset according to the following schedule unless reauthorized by the legislature:
1. Mobile Health Clinic Program pursuant to section 36-4103: Sunsets eight years after the effective date of this chapter.
(a) Evaluation Period: Years six through seven of operation.
(b) Reauthorization Decision: Must occur in year seven legislative session.
(c) Data Collection Requirement: Three years of maturity data, years three through five, must be available for evaluation.
2. Long-term Rehabilitation Centers pursuant to section 36-4105: Sunsets ten years after the effective date of this chapter.
(a) Evaluation Period: Years seven through nine of operation.
(b) Reauthorization Decision: Must occur in year nine legislative session.
(c) Data Collection Requirement: Four years of maturity data, years four through seven, must be available for evaluation.
3. Mental Health Recovery Centers pursuant to section 36-4108: Sunsets ten years after the effective date of this chapter.
(a) Evaluation Period: Years seven through nine of operation.
(b) Reauthorization Decision: Must occur in year nine legislative session.
(c) Data Collection Requirement: Four years of maturity data, years four through seven, must be available for evaluation.
4. Behavioral Health Workforce Recruitment Office pursuant to section 36-4111: Sunsets eight years after the effective date of this chapter.
(a) Evaluation Period: Years six through seven of operation.
(b) Reauthorization Decision: Must occur in year seven legislative session.
(c) Data Collection Requirement: Three years of maturity data, years three through five, must be available for evaluation.
5. Rural Infrastructure Improvement Office pursuant to section 36-4112: Sunsets twelve years after the effective date of this chapter.
(a) Evaluation Period: Years nine through eleven of operation.
(b) Reauthorization Decision: Must occur in year eleven legislative session.
(c) Data Collection Requirement: Completion of Phase 2 improvements and two years of Phase 3 operation data.
B. Maturity-Based Evaluation Criteria: No program component may be evaluated for reauthorization until it has reached program maturity as defined in section 36-4101. Evaluation shall be based on:
1. Outcome Metrics: Treatment success rates, recidivism reduction, workforce placement rates, economic impact.
2. Efficiency Metrics: Cost per patient served, cost savings versus alternatives, administrative overhead.
3. Equity Metrics: Service delivery to tier 1 counties, access for vulnerable populations.
4. Infrastructure Metrics: Sustainability of improvements, maintenance cost analysis.
C. Independent Evaluation Requirement: Two years before each sunset date, the commission shall contract with an independent, nationally recognized evaluation firm to conduct a comprehensive program evaluation. The evaluation shall:
1. Use randomized control trials or quasi-experimental designs where possible.
2. Include cost-benefit analysis comparing program to alternatives.
3. Survey stakeholders including patients, providers and community members.
4. Provide recommendations for continuation, modification or termination.
D. Reauthorization Process:
1. Eighteen months before sunset: Commission submits evaluation report to legislature.
2. Twelve months before sunset: Joint oversight committee holds hearings and makes recommendations.
3. Six months before sunset: Legislature votes on reauthorization.
4. If reauthorized: Program continues for additional term, recommended five to seven years.
5. If not reauthorized: Program enters twenty-four-month wind-down phase with provisions for patient transition and asset disposition.
E. Continuous Improvement Mandate: Even if reauthorized, each program component must undergo review and potential modification every five years based on:
1. Emerging best practices.
2. Technological advancements.
3. Changing community needs.
4. Fiscal sustainability analysis.
TITLE 13 AMENDMENTS – CRIMINAL PENALTIES FOR LABOR EXPLOITATION
Section 2. Title 13, chapter 13, Arizona Revised Statutes, is amended by adding article 9, to be designated as sections 13-1381 through 13-1386, to read:
ARTICLE 9. CRIMINAL LABOR PRACTICES
13-1381. Definitions
In this article, unless the context otherwise requires:
1. "Labor contractor" means any person or entity engaged in the business of supplying workers to perform labor for another person or entity, including farm labor contractors, staffing agencies and any person who recruits or refers workers for employment.
2. "Worker" means any person performing labor or services, regardless of that person's immigration status.
13-1382. Aggravated labor trafficking; classification
A. A person commits aggravated labor trafficking if the person commits an offense under section 13-1307, labor trafficking, and the conduct involves one or more of the following aggravating factors:
1. The use or threatened use of a deadly weapon or dangerous instrument.
2. Infliction of serious physical injury on the victim.
3. The victim was under eighteen years of age.
4. The offense involved the knowing destruction, concealment, confiscation or withholding of the victim's passport, driver license or other government-issued identification document with the intent to impede the victim's freedom of movement or ability to leave employment.
5. The offense involved housing workers in conditions that violate state or local housing, health or safety codes and that place the workers' health or safety at serious risk.
B. Aggravated labor trafficking is a class 2 felony. The presence of each additional aggravating factor may be considered at sentencing for purposes of enhancement.
13-1383. Labor contractor fraud; classification; civil liability
A. A labor contractor commits labor contractor fraud if, with intent to defraud a worker or an employer, the contractor:
1. Charges or collects an unlawful fee from a worker for recruitment, referral, procurement of employment or any related service. For the purposes of this section, any fee charged to a worker for these services is presumed unlawful. This presumption may be rebutted by clear and convincing evidence that the fee is expressly permitted by federal law and was for a service that the worker voluntarily and knowingly contracted for.
2. Makes a materially false statement or promise to a worker concerning the terms, conditions or existence of employment.
3. Fails to provide a written contract to a worker, in a language understood by the worker, detailing the essential terms of employment including wage rate, hours, worksite location and housing address, if provided, within seventy-two hours after the worker's commencement of work.
B. Labor contractor fraud is a class 6 felony.
C. In addition to any criminal penalty, a person who violates this section is subject to a civil penalty of up to $10,000 for each violation, payable to this state, and is liable to the aggrieved worker for treble damages, costs and reasonable attorney fees.
13-1384. Sentencing considerations; asset forfeiture
A. In sentencing a person convicted of an offense under this article, the court shall consider ordering:
1. Restitution to each victim in an amount not less than three times the fair market value of the labor or services provided.
2. Forfeiture of any property used or intended to be used to commit or facilitate the commission of the offense.
B. Assets forfeited pursuant to this section shall be deposited in a restricted account administered by the attorney general to fund investigations, prosecutions and victim services related to labor trafficking and exploitation.
13-1385. Unlawful worker retaliation; classification
A. An employer, labor contractor or any person acting on their behalf commits unlawful worker retaliation if the person, with the intent to retaliate for or prevent the reporting of a violation of law, knowingly:
1. Threatens to report or actually reports the worker or the worker's family member to a federal immigration agency.
2. Threatens to cause or attempts to cause the early termination or nonrenewal of the worker's federal nonimmigrant visa status.
3. Withholds or threatens to withhold any passport, employment authorization document or other federal immigration document.
B. Unlawful worker retaliation is a class 3 felony.
C. For the purposes of this section, "employer" includes any person or entity that files or sponsors a petition or application for a worker's federal nonimmigrant visa status.
13-1386. Phased enforcement implementation and reporting
A. The prohibitions and penalties established in this article shall have full force and effect as of the effective date of this act.
B. Recognizing the specialized resources and training required for the effective investigation and prosecution of the offenses established in this article, the attorney general, in consultation with the county attorneys, shall implement a phased capacity-building plan as follows:
1. Phase I, initial twelve months: The attorney general shall:
(a) Develop and disseminate statewide investigative protocols, charging guidelines and victim interview standards for offenses under this article, with particular focus on offenses involving unlicensed foreign labor contractors as defined in Title 23, Chapter 2, Article 10.
(b) In coordination with existing victim service organizations, establish a statewide referral network for victims of labor exploitation.
(c) Conduct initial training for prosecutors and investigators in the attorney general's office and for law enforcement agencies in counties with populations greater than five hundred thousand.
2. Phase II, months thirteen through twenty-four: The attorney general shall:
(a) Expand training to include prosecutors, investigators and law enforcement in all remaining counties.
(b) Establish and publicize a dedicated tip line and digital portal for reporting suspected labor trafficking and exploitation.
(c) Begin active, statewide oversight and coordination of cases, providing specialized support to county attorneys on request. The attorney general shall prioritize the investigation and prosecution of cases involving entities required to be licensed under Title 23, Chapter 2, Article 10 that are operating without a license.
3. Phase III, month twenty-five and ongoing: Full statewide enforcement capacity shall be maintained, with the attorney general's office serving as the central coordinating and support authority for all prosecutions under this article.
C. The attorney general shall submit annual reports to the governor, the president of the senate and the speaker of the house of representatives on the implementation of this section, including:
1. Training conducted and personnel trained.
2. The number of tips, complaints and cases initiated under this article, disaggregated by whether the case involved a licensed or unlicensed labor contractor.
3. Challenges in investigation or prosecution.
4. Recommendations for any necessary statutory or budgetary adjustments to ensure effective statewide enforcement.
D. This article shall sunset seven years after the effective date of this act, unless reauthorized by the legislature. Evaluation for reauthorization shall occur in years five through six, with reauthorization decisions made in the year six legislative session. Three years of maturity data, years three through five, must be available for evaluation.
E. Nothing in this section shall be construed to prevent any county attorney from investigating or prosecuting an offense under this article at any time following the effective date of this act, provided such action is in accordance with law.
TITLE 23 AMENDMENTS – LABOR CONTRACTOR LICENSING AND ENFORCEMENT
Section 3. Title 23, chapter 2, Arizona Revised Statutes, is amended by adding articles 9 and 10, to be designated as sections 23-391 through 23-393 and sections 23-394 through 23-394.08, to read:
ARTICLE 9. EMPLOYER AND CONTRACTOR RESPONSIBILITIES FOR SEASONAL LABOR
23-391. Joint liability for wage violations
A. An agricultural employer, as defined by the industrial commission, that contracts for labor or services with a labor contractor shall be jointly and severally liable for any unpaid wages, interest or civil penalties owed by that contractor to workers for work performed for the employer.
B. Subsection A of this section does not apply if the agricultural employer can demonstrate, as an affirmative defense, that it has:
1. Verified the labor contractor possessed a valid certificate of registration as a farm labor contractor from the United States department of labor, if required by federal law, at the time of contracting.
2. Maintained, for a period of four years, payroll records received from the labor contractor documenting payment of wages to workers assigned to the employer's premises.
3. Not been found by a court or the industrial commission to have participated in, or had knowledge of, the labor contractor's wage violations.
C. For the purposes of this section, "agricultural employer" also includes any person or entity in the hospitality, construction, landscaping or food processing sectors that contracts for seasonal or temporary labor or services with a labor contractor. The joint liability provisions of this section shall apply to such employers.
23-392. Enhanced enforcement unit; rural outreach and visa holder protections
A. The industrial commission shall establish and fund a dedicated Labor Standards Enforcement Unit.
B. The unit shall:
1. Investigate complaints of wage theft, unsafe working conditions and housing violations in the agricultural, hospitality, construction, landscaping and food processing sectors.
2. Conduct targeted, unannounced audits of labor contractors and employers in regions with historically high rates of violations. This authority includes the inspection and monitoring powers specified in section 23-394.05 for licensed Foreign Labor Contractors.
3. Develop and distribute educational materials in relevant languages informing workers of their rights under state law, including the "Know Your Rights" guide developed in coordination with the attorney general pursuant to section 23-394.08.
4. Establish a multilingual hotline and online portal for reporting violations.
5. Coordinate with the attorney general and county attorneys for criminal referrals where appropriate.
6. Prioritize investigations involving workers recruited from outside the United States or who are participants in federal cultural exchange or training programs, due to their heightened vulnerability to exploitation and isolation from local support networks.
C. The unit shall maintain a regional office in a major agricultural county and shall conduct regular mobile office hours in rural counties.
D. The unit shall prioritize investigations of entities acting as labor contractors for foreign workers who are not licensed under article 10 of this chapter.
23-393. Retaliation protection
A. It is unlawful for any employer, labor contractor or their agent to discharge, threaten, discriminate against or otherwise retaliate against a worker because the worker has:
1. Filed a complaint or instituted or caused to be instituted any proceeding under this article or related wage laws.
2. Testified or is about to testify in any such proceeding.
3. Exercised any right afforded by this article on behalf of himself, herself or others.
B. A worker who prevails in a civil action for retaliation under this section shall be awarded treble damages, reinstatement and reasonable attorney fees and costs.
ARTICLE 10. FOREIGN LABOR CONTRACTOR LICENSING AND OVERSIGHT
23-394. Definitions
In this article, unless the context otherwise requires:
1. "Foreign Labor Contractor" means any person or entity engaged in the business of recruiting, referring, supplying or employing one or more foreign national workers who are in the United States under a federal nonimmigrant visa, including but not limited to H-1B, H-2A, H-2B, J-1, L-1 or O-1 visas, or under a federal immigrant visa petition filed by or through that person or entity, for work to be performed in whole or in part within this state.
2. "Licensee" means a person or entity holding a valid Foreign Labor Contractor License issued under this article.
3. "Department" means the Industrial Commission of Arizona.
4. "Worker" means any foreign national person performing labor or services in Arizona under the auspices of a Foreign Labor Contractor.
23-394.01. License required; exemptions
A. It is unlawful for any person to act as a Foreign Labor Contractor without a valid license issued by the department.
B. The following are exempt from this article:
1. An employer that directly petitions for and employs foreign national workers for work at its own bona fide place of business, without using a contractor to recruit, refer or supply such workers.
2. Attorneys licensed to practice law in any United States jurisdiction who provide legal advice and represent clients in the visa petition process but do not recruit, refer or supply workers.
C. A license under this article is in addition to any other business or professional license required by law.
23-394.02. Application and licensing requirements
A. An applicant for a Foreign Labor Contractor License shall submit an application to the department on a form prescribed by the department, accompanied by:
1. A nonrefundable application fee of $2,500.
2. Proof of a surety bond in the amount of $100,000, executed by a surety company authorized to do business in this state, in favor of the state for the benefit of any person damaged by the licensee's violation of this article.
3. Disclosure of all owners, officers and directors, and any previous license denials, suspensions or revocations in this or any other state.
4. A sworn statement of compliance with all federal visa program requirements.
B. The department shall conduct a background investigation of the applicant and its principals.
C. A license is valid for two years and may be renewed on application, payment of a $1,500 renewal fee and demonstration of continued compliance.
23-394.03. Mandatory operating standards
A. A Licensee shall:
1. Provide a written contract, in a language understood by the worker, detailing all essential terms of employment, including wage, hours, worksite and housing, before the worker's commencement of work.
2. Pay or ensure the payment of wages that meet or exceed Arizona's minimum wage and all applicable federal visa-specific wage requirements, including Adverse Effect Wage Rate or prevailing wage.
3. Prohibit the charging of any recruitment, referral or placement fee to a worker, except those expressly permitted by federal statute and fully disclosed.
4. Maintain records of all placements, wages paid, housing provided and contracts for four years and make them available for inspection by the department.
B. A Licensee shall not:
1. Hold, confiscate or destroy a worker's passport, visa or other government identification.
2. Make materially false promises regarding the terms or conditions of employment.
3. Retaliate against a worker for asserting rights under this article.
23-394.04. Domestic recruitment requirement
A. Before submitting a federal visa petition for a worker, a Licensee, or the employer it serves, must document a good faith effort to recruit domestic workers for the position. This documentation must be maintained for inspection.
B. The required duration of this recruitment effort shall be based on the criticality of the labor need as determined by the department, in consultation with the Arizona Office of Economic Opportunity. Critical needs in sectors like healthcare may have a shorter period than non-critical seasonal needs.
C. The department may establish a voluntary, statewide resume registry for domestic workers to facilitate this recruitment requirement.
23-394.05. Compliance monitoring and inspections
A. The department shall conduct proactive, unannounced inspections of Licensees' worksites, housing facilities and offices.
B. Inspectors shall have the authority to:
1. Review all records required under this article.
2. Conduct private, confidential interviews with workers, in their preferred language, without the presence of the employer or contractor.
3. Utilize plainclothes inspectors to observe working and living conditions without prior notice.
C. The department shall establish a risk-based inspection schedule, prioritizing Licensees with past violations, those in high-risk industries or those based on credible complaints.
23-394.06. Disciplinary actions; penalties
A. The department may deny, suspend or revoke a license, or impose civil penalties, for:
1. A violation of this article or any rule adopted under it.
2. A conviction of any offense under Title 13, Article 9.
3. Fraud or misrepresentation in the application process.
4. Failure to comply with a lawful inspection.
B. Civil penalties may not exceed $25,000 per violation. Each affected worker constitutes a separate violation.
C. Operating as a Foreign Labor Contractor without a license is a class 1 misdemeanor. A second or subsequent violation is a class 6 felony.
23-394.07. Funding; fee structure
A. The department may charge Licensees a per-worker placement assessment not to exceed five per cent of the worker's first-year annualized salary or wage, to be paid by the end-user employer. This fee shall be deposited in the Foreign Labor Contractor Licensing Fund established by subsection B.
B. The Foreign Labor Contractor Licensing Fund is established consisting of fees and penalties collected under this article. The department shall administer the fund. Monies in the fund are continuously appropriated to the department to administer and enforce this article.
23-394.08. Rulemaking; "Know Your Rights" guide
A. The department, in consultation with the attorney general, shall adopt rules necessary to implement this article.
B. The department, in coordination with the attorney general, shall develop and distribute a "Know Your Rights" guide for temporary foreign workers in Arizona. The guide shall be translated into commonly spoken languages and explain state labor laws, the protections of this article, the prohibition on document confiscation and retaliation and how to report abuses. Licensees shall be required to distribute this guide to every worker they place.
C. This article shall sunset seven years after the effective date of this act, unless reauthorized by the legislature. Evaluation for reauthorization shall occur in years five through six, with reauthorization decisions made in the year six legislative session. Three years of maturity data, years three through five, must be available for evaluation.
Section 4. Joint Legislative Oversight Committee; establishment
A. The Arizona Community Safety and Recovery Oversight Committee is established consisting of five members of the senate, appointed by the president of the senate, and five members of the house of representatives, appointed by the speaker of the house of representatives. No more than three members from each chamber may be from the same political party.
B. The committee shall:
1. Meet at least quarterly during years one through three and semiannually thereafter to review the implementation of all provisions.
2. Receive the semiannual reports required by section 36-4109 and annual reports from other agencies.
3. Hold public hearings in tier 1 counties at least annually to receive testimony from state agencies, stakeholders and the public on program performance.
4. Submit annual reports to the full legislature with findings and recommendations, including whether to continue, modify or terminate any provision of this act.
5. Monitor sunset timelines and ensure evaluation data collection begins at appropriate maturity milestones.
6. Review independent evaluations eighteen months before each sunset date.
7. Conduct reauthorization hearings twelve months before each sunset date.
8. Make reauthorization recommendations to the full legislature six months before each sunset date.
9. Before month fifty-four, make recommendations regarding the comprehensive feasibility reassessment required by the commission's implementation plan.
Section 5. Appropriation
The sum of $108,000,000 is appropriated from the state general fund over four fiscal years, 2027-2028 through 2030-2031, to the Arizona Community Safety and Recovery Initiative, to be allocated as follows:
Year 1, fiscal year 2027-2028: $28,000,000
1. $8,000,000 to the Arizona Border Recovery and Public Safety Commission for planning, mobile clinic procurement and workforce pipeline development.
2. $7,000,000 to the Industrial Commission for initial enforcement unit establishment and licensing program development.
3. $3,000,000 to the Attorney General for initial training and victim services setup.
4. $3,000,000 to county sheriffs' departments in tier 1 counties only for initial training.
5. $2,000,000 to the Arizona Department of Revenue for data analytics development.
6. $2,000,000 to the Arizona Commerce Authority for labor market portal development.
7. $2,000,000 to the Arizona Behavioral Health Workforce Recruitment Office for training pipeline establishment.
8. $1,000,000 to the Administrative Office of the Courts for initial judicial training.
9. $2,000,000 to the Rural Infrastructure Improvement Office for initial assessment and Phase 1 mobile solutions.
Year 2, fiscal year 2028-2029: $30,000,000 (subject to legislative review of year 1 progress)
1. $12,000,000 to the Commission for mobile clinic deployment and facility construction start.
2. $7,000,000 to the Industrial Commission for enforcement unit expansion.
3. $4,000,000 to the Attorney General for expanded operations.
4. $3,000,000 to county sheriffs' departments in tier 1 and tier 2 counties.
5. $2,000,000 to the Recruitment Office for expanded training.
6. $2,000,000 to the Arizona Department of Administration for integrated data systems.
7. $4,000,000 to the Rural Infrastructure Improvement Office for Phase 1 implementation.
Year 3, fiscal year 2029-2030: $30,000,000 (subject to comprehensive feasibility assessment)
1. $15,000,000 to the Commission for facility completion and initial operations.
2. $6,000,000 to the Industrial Commission for full licensing program implementation.
3. $3,000,000 to the Attorney General for ongoing operations.
4. $3,000,000 to county sheriffs' departments statewide.
5. $2,000,000 to the Recruitment Office for national or international recruitment.
6. $1,000,000 to the Administrative Office of the Courts for statewide judicial training.
7. $5,000,000 to the Rural Infrastructure Improvement Office for Phase 2 planning and initial construction.
Year 4, fiscal year 2030-2031: $20,000,000 (contingent on year 3 performance review)
1. $8,000,000 to the Commission for continued operations.
2. $4,000,000 to the Industrial Commission for licensing program maintenance.
3. $5,000,000 to the Rural Infrastructure Improvement Office for Phase 2 implementation.
4. $3,000,000 to the Recruitment Office for sustained training pipelines.
Funding beyond year 4 shall be subject to:
1. Comprehensive feasibility reassessment at fifty-four months.
2. Demonstration of infrastructure improvement milestones.
3. Workforce pipeline production targets.
4. Legislative appropriation based on performance metrics.
Sunset Contingency Fund: Five per cent of each year's appropriation shall be set aside in a restricted account to fund potential program wind-down activities if not reauthorized.
All monies remaining unexpended and unencumbered at the end of each fiscal year may be carried forward to the next fiscal year for the same purposes, with any funds unexpended after June 30, 2032 reverting to the state general fund.
Section 6. Infrastructure Bond Authorization
A. The Arizona Border Recovery and Public Safety Commission is authorized to issue up to $50,000,000 in revenue bonds for rural infrastructure improvements, to be repaid through:
1. Federal infrastructure matching funds.
2. Cost savings from reduced emergency services utilization.
3. Revenue from public-private partnerships.
4. Future legislative appropriations if savings materialize.
B. Bond proceeds shall be used exclusively for:
1. Broadband infrastructure in tier 1 and tier 2 counties.
2. Healthcare facility construction or renovation.
3. Workforce housing development.
4. Training facility construction.
C. Bonds may only be issued after:
1. Completion of infrastructure assessment.
2. Demonstration of 2:1 federal matching funds.
3. Legislative oversight committee approval.
Section 7. Federal Preemption and Severability
A. Federal preemption savings clause: Notwithstanding any other provision of this act, no provision shall be construed to:
1. Confer, grant or regulate any immigration status, which is the exclusive purview of the federal government.
2. Require any state official to violate federal immigration law.
3. Apply to or regulate the terms of any federal nonimmigrant visa program, including but not limited to the H-2A, H-2B, H-1B, J-1 or other similar programs, except where state law of general applicability, such as laws prohibiting assault, fraud, wage theft or retaliation, applies to all persons and employers within this state.
B. Severability: If a provision of this act or its application to any person or circumstance is held invalid by a court of competent jurisdiction due to federal preemption or any other reason, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. The legislature expressly declares that it would have enacted the remaining portions of this act, particularly Title 36, Chapter 40 and Title 23, Article 9, even if any other provision were found invalid.
Section 8. Short Title
This act may be cited as the "Arizona Border Security and Community Recovery Act".
Section 9. Effective Date and Implementation Timeline
This act is effective from and after December 31, 2027, with the following implementation timeline:
Phase 1: Foundation Years, years one through two
- Establish commission and offices.
- Conduct assessments and planning.
- Begin workforce training pipelines.
- Deploy mobile infrastructure solutions.
- Start judicial diversion pilots in tier 1 counties.
Phase 2: Build-Out Years, years three through five
- Construct permanent facilities in tier 1 counties.
- Implement infrastructure improvements.
- Expand to tier 2 counties.
- Achieve workforce production targets.
- Begin comprehensive data collection.
Phase 3: Maturation Years, years six through eight
- Full operation of all tier 1 and tier 2 facilities.
- Complete infrastructure build-out.
- Three years of maturity data collection.
- Independent evaluations for initial sunsets.
- Reauthorization decisions.
Phase 4: Sustainability Years, years nine through twelve
- Program optimization based on data.
- Expansion decisions for tier 3 counties.
- Infrastructure maintenance and upgrades.
- Final reauthorization evaluations.
- Wind-down planning if not continued.
The licensing requirements of Title 23, Article 10 shall apply to all contracts for labor entered into on or after July 1, 2028.
