REFERENCE TITLE: employment security; extended benefits..

State of Arizona House of Representatives Fiftieth Legislature Third Special Session 2011

HB 2001

Introduced by Representatives Pancrazi, Ableser, Alston, Campbell, Chabin, Farley, Gallego, Gonzales, Hale, Hobbs, Miranda C, Miranda R, Patterson, Saldate, Tovar, Wheeler, Senator Sinema: Representatives Arredondo, Meyer

 

AN ACT

 

Amending Sections 23-630, 23-634.01, 23‑730.02 and 23-769, Arizona Revised Statutes; relating to employment security.

 

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

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

Section 1.  Section 23-630, Arizona Revised Statutes, is amended to read:

START_STATUTE23-630.  On and off indicators

A.  There is an Arizona on indicator for a week if the department determines, in accordance with the regulations of the United States secretary of labor, that for the period consisting of such week and the immediately preceding twelve weeks:

1.  The rate of insured unemployment in this state, not seasonally adjusted:

(a)  Equaled or exceeded one hundred twenty per cent of the average of such rates for the corresponding thirteen‑week period ending in each of the preceding two calendar years, and

(b)  Equaled or exceeded five per cent; or

2.  The rate of insured unemployment in this state, not seasonally adjusted, equaled or exceeded six per cent; or

3.  With respect to benefits for weeks of unemployment beginning after January 31, 2009:

(a)  The average rate of total unemployment, seasonally adjusted, according to the United States secretary of labor, for the period consisting of the most recent three months for which data for all states are published before the close of such week equals or exceeds six and one-half per cent; and

(b)  The average rate of total unemployment in this state, seasonally adjusted, according to the United States secretary of labor, for the three month period described in subdivision (a) of this paragraph, equals or exceeds one hundred ten per cent of such average for either or both any or all of the corresponding three month periods ending in the two or three preceding calendar years as applicable under federal law.

B.  There is an Arizona off indicator for a week unless the department determines in accordance with the regulations of the United States secretary of labor that for the period consisting of such week and the immediately preceding twelve weeks the conditions of subsection A, paragraph 1, 2 or 3 are satisfied.

C.  Subsection A, paragraph 3 only applies from and after January 31, 2009 until the week ending three four weeks before the last week the federal sharing is authorized by Public Law 111-5, section 2005(a), without regard to Public Law 111-5, section 2005(c), or the week ending December 12, 2009, whichever is later.

D.  Notwithstanding any other provision of this chapter, the governor shall suspend the payment of extended benefits under this chapter to the extent necessary to ensure that otherwise eligible individuals are not denied, in whole or in part, the receipt of emergency unemployment compensation benefits authorized by the federal supplemental appropriations act of 2008 (P.L. 110-252), the unemployment compensation extension act of 2008 (P.L. 110-449) and the American recovery and reinvestment act of 2009 (P.L. 111-5) and that this state receives the maximum reimbursement from the federal government for the payment of those emergency benefits. END_STATUTE

Sec. 2.  Section 23-634.01, Arizona Revised Statutes, is amended to read:

START_STATUTE23-634.01.  Denial of benefits for failure to accept suitable work or actively seek work; definition

A.  Notwithstanding section 23‑776, an individual who is found by the department, with respect to any week in an eligibility period which that begins from and after April 4, 1981, to have failed to apply for or accept available suitable work to which he the individual was referred by the department or to have failed to actively engage in seeking work is disqualified from receiving extended benefits.  The disqualification shall begin with the week in which the failure occurred and continue until the individual has been employed in each of four subsequent weeks, whether or not consecutive, and has earned remuneration equal to not less than four times his the individual's weekly benefit amount.

B.  An individual shall not be denied extended benefits for failure to accept an offer of or apply for available suitable work as defined in subsection G of this section, if:

1.  The position was not offered to the individual in writing or was not listed with the department.

2.  The failure would not result in a denial of benefits under section 23‑776 to the extent that the criteria of suitability in section 23‑776 are not inconsistent with this section.

C.  If an individual furnishes evidence satisfactory to the department that prospects for obtaining work in his the individual's customary occupation within a reasonably short period are good, the determination of whether any work is suitable with respect to the individual shall be made in accordance with the provisions of section 23‑776 without reference to the definition contained in this section.

D.  Work shall not be considered suitable work under this section if it would not be considered suitable under section 23‑776, subsection C.

E.  For the purposes of this section, an individual shall be treated as actively engaged in seeking work during any week if the department finds from tangible evidence provided by the individual that he the individual:

1.  Has engaged in a systematic and sustained effort to obtain work at least four days during such week.

2.  Has made at least one contact with a potential employer per day of required work search.

3.  Has recertified that the individual will accept any appropriate offer of suitable work as defined in subsection G of this section.

4.  Has recertified that the individual is complying with all eligibility requirements.

5.  Has made contact with an employment service program within the department.

6.  Has made contact with any referral that is received under subsection f of this section.

7.  Has agreed to participate in community service that is determined by the department if the United States department of labor permits the community service.

F.  The department shall refer an individual entitled to extended benefits under this chapter to any work which that is suitable work.

G.  For the purposes of this section, "suitable work" with respect to any individual means work within the individual's capabilities in which:

1.  The gross average weekly wages payable for the work exceed the sum of the individual's weekly benefit amount plus the amount of any supplemental unemployment benefits payable to the individual for such week.

2.  The wages for the work are at least equal to the higher of:

(a)  The minimum wages provided by section 6(a)(1) of the fair labor standards act of 1938, without regard to any exemption.

(b)  The state or local minimum wage. END_STATUTE

Sec. 3.  Section 23-730.02, Arizona Revised Statutes, is amended to read:

START_STATUTE23-730.02.  Temporary reduction of required income rates

Notwithstanding any other provision of this article, beginning on January 1, 2001 until the amount of the excise tax imposed pursuant to 26 United States Code section 3301 is reduced to less than six per cent or less, the required income rates prescribed in section 23‑730 are reduced by one‑tenth of one per cent. END_STATUTE

Sec. 4.  Section 23-769, Arizona Revised Statutes, is amended to read:

START_STATUTE23-769.  Job training employer tax

A.  Beginning on January 1, 2001, a tax equal to one‑tenth of one per cent of taxable wages as provided and defined in section 23‑622 and that are paid to an employee each year is imposed on each employer in this state except employers described in subsection B or C of this section.

B.  Subsection A of this section does not apply to employers who have elected to become liable for payment in lieu of contributions pursuant to section 23‑750.

C.  Until the amount of the excise tax imposed pursuant to 26 United States Code section 3301 is reduced to less than six per cent or less, subsection A of this section does not apply to employers:

1.  With a positive reserve ratio of at least thirteen per cent pursuant to section 23‑730.

2.  With a positive reserve ratio of at least twelve per cent but less than thirteen per cent.

3.  That are assigned the contribution rate of two per cent pursuant to section 23‑729 or two and seven‑tenths per cent pursuant to section 23‑730.

4.  With a negative reserve ratio pursuant to section 23‑730.

D.  The department of economic security shall collect this tax on a quarterly basis and shall deposit, pursuant to sections 35‑146 and 35‑147, the monies collected pursuant to this section in the Arizona job training fund established by section 41‑1544.  Monies collected pursuant to this section shall not be commingled in any manner with monies collected pursuant to articles 4, 5 and 5.1 of this chapter.

E.  From and after December 31, 2004, the payment of contributions or job training employer taxes is not required if the quarterly amount of the contributions and taxes is less than ten dollars. END_STATUTE

Sec. 5.  Unemployment insurance reforms; report

A.  The department of economic security shall conduct an evaluation of potential reform options for unemployment benefits, including:

1.  The employer contribution rates to the unemployment compensation fund.

2.  The contributions to the unemployment fund from small businesses and start-up businesses.

3.  Any changes to the requirements for recipients of unemployment benefits, including work search requirements.

4.  Any other reforms for eligibility requirements.

B.  The department of economic security shall conduct a fiscal analysis of the impact on the unemployment compensation fund for each evaluated reform option under subsection A.

C.  On or before October 1, 2011, the department of economic security shall submit a report regarding the evaluation of reform options and fiscal analysis to the governor, the president of the senate and the speaker of the house of representatives and provide a copy of this report to the secretary of state.

Sec. 6.  Department of economic security; exemption from rule making

The department of economic security is exempt from the rule making requirements of title 41, chapter 6, Arizona Revised Statutes, for the purposes of implementing this act.

Sec. 7.  Retroactivity

Section 23-630, Arizona Revised Statutes, as amended by this act, applies retroactively to from and after April 30, 2011.

Sec. 8.  Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.