Senate committee recommends confirmation of Gaetano John Testini as Industrial Commission director

Gaetano John Testini, the chief legal counsel–turned–acting director at the Industrial Commission of Arizona, received a unanimous recommendation from the Arizona Senate Committee on Director Nominations to be confirmed as director of the commission.

The committee recommended Testini to the full Senate by a 5-0 roll call after a hearing in which members questioned the nominee about agency reforms, worker-safety priorities, the newly formed fraud unit and his vetting process. Chairman Jake Hoffman opened the session by describing the confirmation role under state law, citing "the statutorily required check on executive authority found in ARS 38 dash 2 11."

Testini gave a five- to ten-minute opening statement describing his background and his decade at the commission. "I am a lawyer by trade but came to the practice of law literally by accident," he told the committee, recounting earlier work representing injured workers and later employers before joining the commission as an administrative law judge. He reviewed recent agency achievements, including the Ombudsman Office’s expansion, changes in ADOSH (the state OSHA plan), and IT and accounting upgrades.

Why it matters: The Industrial Commission oversees workers' compensation, the state OSHA plan (ADOS/ADOSH) and labor-claims processes; the director shapes how those programs are prioritized, enforced and modernized. Committee exchanges focused on whether the agency is positioned to improve safety outcomes and customer service while meeting enforcement responsibilities.

Key agency reforms and performance details - Ombudsman expansion: Testini said the Ombudsman Office was reorganized into a separate division with a statutory ombudsman, two deputy ombudsmen and three assistant ombudsmen; the team handled about 8,000 inquiries and closed roughly 95% of them the same day, and now has staff presence in Tucson. - ADOSH and safety work: Testini described ADOSH changes that added a deputy director of administration, an intake team and a grant manager; he said the consultation team had expanded proactive safety education and the bureau of labor statistics expected improved compliance this year. - Operational modernization: The MIS division migrated systems to a cloud interface, saving money and improving security. The accounting division implemented an automated workers' compensation assessment system that Testini said raised online payments more than 500%, reducing paper-check processing. - Medical fee schedule timing: Testini said the Medical Resource Office moved the physicians and pharmaceutical fee-schedule effective date from Oct. 1 to May 1 to align earlier with Medicare/other commercial changes and reduce payer/provider complexity.

Worker-safety priorities and heat Testini described a five-year strategic plan with goals he listed to the committee: reduce workplace fatalities by 10 percent, reduce injuries by 5 percent, improve customer-satisfaction survey results by 10 percent and increase employee retention by 10 percent (he noted the fifth goal — establishing a heat safety standard — had been altered). On heat-related workplace risk, Testini said the agency convened a stakeholder task force and shifted from pursuing a regulatory heat standard to promoting "heat safety best practices" through the non-punitive consultation unit, given uncertainty over federal OSHA rulemaking.

Fraud unit and workers’ compensation enforcement Testini reviewed the newly established fraud unit created by the 2023 Legislature (Senate Bill 1164). He said implementation required rulemaking and coordination with the Attorney General's office; the agency hired an investigator who began work in January or early February and is currently one investigator within the legal division. Testini said the agency requested 10 FTE in its current budget request and expected to grow the unit over time; he told the committee the intent was to stand up processes before expanding staffing.

Committee questioning and follow-up Committee members pressed Testini on internal supervision and retention, inspector oversight, and the balance between enforcement and consultation. Senators asked about the vetting process that led to his selection; Testini described interviews with the transition team and a governor’s phone call offering the job.

Formal action The vice chair moved that the committee recommend the Senate confirm Testini. Secretary roll call: Senator Bravo — Aye; Senator Kavanaugh — Aye; Senator Ortiz — Aye; Senator Scholl — Aye; Senator Bachman — Aye. By a vote of 5 ayes, 0 nays, 0 not voting, the committee recommended confirmation to the full Senate.

What’s next Testini’s nomination will proceed to a full Senate confirmation vote. The hearing record includes detailed committee exchanges about priorities for hiring, the ADOSH program, the fraud unit’s staffing plans and the agency’s modernization efforts.