HB2173 - 511R

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

Section 1. Title 23, chapter 4, Arizona Revised Statutes, is amended by adding article 2.1, to read:

ARTICLE 2.1. UNEMPLOYMENT INSURANCE TAX ANTICIPATION NOTES

START_STATUTE23-665. Definitions

In this article, unless the context otherwise requires:

1. "Director" means the director of the department.

2. "Note" means a note issued pursuant to this article.

3. "Note debt service fund" means the fund ESTABLISHED and administered pursuant to section 23-665.03.

4. "note related expenses" means any expenses incurred by the director to issue and administer the notes including underwriting fees and costs, trustee fees, financial consultant fees, printing and advertising costs, paying agent fees, transfer agent fees, legal, accounting, feasibility consultant and other professional fees and expenses, note insurance or other credit enhancements or liquidity facilities, attorney and accounting fees and expenses related to credit enhancement, remarketing fees, rating agency fees and costs, travel and telecommunications expenses and all other fees considered necessary by the director to market and administer the notes.

5. "Unemployment special assessment fund" means the fund established pursuant to section 23-665.02. END_STATUTE

START_STATUTE23-665.01. Authorization of unemployment insurance tax anticipation notes

A. The director may issue unemployment insurance tax anticipation notes pursuant to this article during fiscal year 2013–2014 in an amount not to exceed the lesser of two hundred million dollars and the amount determined by the director to be sufficient to provide monies to do all of the following:

1. Repay the outstanding balance borrowed from the federal government to pay unemployment insurance benefits.

2. provide for payment of unemployment insurance benefits during fiscal year 2013–2014 until unemployment insurance tax receipts are sufficient to provide for payment of benefits.

3. Pay note related expenses.

B. The director shall authorize the issuance of the notes with a signed document that prescribes all of the following:

1. The fixed or variable rates of interest, the dates on which interest is payable and the denominations of the notes.

2. The dates of the notes and maturity within twelve months after the date of issuance.

3. The form of the notes.

4. The manner of executing the notes.

5. The medium and place of payment.

6. The terms of redemption before maturity, including whether a premium is payable on early redemption.

C. The notes may be sold at public or private sale at the price and on the terms prescribed by the director at, above or below par.

D. The director shall deposit the net proceeds received from the sale of the notes in a separate account created for that purpose. Monies in the account may be invested as provided in section 23-665.08. END_STATUTE

START_STATUTE23-665.02. Unemployment special assessment proceeds fund

A. The unemployment special assessment proceeds fund is established and consists of monies transferred to the fund as provided by law. The fund shall be kept separate from all other monies of this state. The department shall administer the fund. Monies in the fund are continuously appropriated for the purposes prescribed in this section and are exempt from the provisions of section 35-190, relating to the lapsing of appropriations.

B. Notwithstanding any other law, if this state has an outstanding loan to pay unemployment insurance benefits to eligible claimants, fund monies shall be:

1. Used to pay interest charges incurred on the loan.

2. After payments pursuant to paragraph 1 of this subsection, used to retire the loan principal or, if the director has issued notes pursuant to this article, transferred to the note debt service fund as prescribed in section 23-665.03.

C. Any monies remaining in the fund after payment of all principal and interest on the loan, including delinquent amounts collected after this payment, and amounts payable as prescribed in section 23-655.03, subsection A, paragraph 2 shall be transferred to the unemployment compensation fund established by section 23-701. END_STATUTE

START_STATUTE23-665.03. Note debt service fund

A. If the director issues notes, the director shall do all of the following:

1. Establish a note debt service fund consisting of monies transferred to the fund pursuant to law.

2. Transfer monies from the unemployment special assessment proceeds fund to the note debt service fund until the debt service fund contains monies sufficient to pay all interest to become due on the notes and note related expenses.

3. Transfer monies from the monies credited to this state's account in the unemployment trust fund pursuant to 42 United States Code section 1103 to the note debt service fund in an amount sufficient to repay all unpaid principal of the notes.

B. Monies in the note debt service fund may be used only to pay amounts payable on notes and note related expenses as they become due.

C. The department shall administer and account for the note debt service fund.

D. On the payment of all amounts due and to become due on the notes and the payment of all note related expenses, any amounts remaining in the note debt service fund shall be transferred to the unemployment compensation fund established by section 23-701. END_STATUTE

START_STATUTE23-665.04. Securing principal and interest; refunding notes

To secure the principal and interest on notes, the director may:

1. Segregate the note debt service fund into one or more accounts and subaccounts and provide that notes may be secured by a lien on all or part of the monies paid to the note debt service fund or to any account or subaccount in the fund.

2. Provide that the notes are secured by a first lien on the monies paid into the note debt service fund as provided in this article and pledge and assign to or in trust for the benefit of the holders of the notes all or part of the monies in the note debt service fund or in any account or subaccount in the fund as is necessary to secure and pay the principal, the interest and any premium on the notes as they come due.

3. Establish priorities among noteholders based on criteria adopted by the director.

4. Set aside, regulate and dispose of reserves and sinking accounts.

5. Prescribe the procedure, if any, by which the terms of any contract with noteholders may be amended or abrogated, the amount of notes the holders of which must consent to an amendment or abrogation and the manner in which the consent may be given.

6. Provide for payment of note related expenses from the proceeds of the sale of the notes or other sources authorized by this article and available to the director.

7. Provide for the services of trustees, agents and consultants and other specialized services with respect to the notes.

8. Take any other action that may affect the security and protection of the notes or interest on the notes.

9. Refund any notes issued by the director by issuing new notes, if these new notes are secured by and payable from a source of revenues authorized by this article.

10. Issue notes partly to refund outstanding notes and partly for any other purpose consistent with this article. END_STATUTE

START_STATUTE23-665.05. Lien of pledge

A. A pledge made under this article in connection with the notes is valid and binding from the time when the pledge is made.

B. The monies deposited in the note debt service fund are immediately subject to the lien of the pledge without any future physical delivery or further act. Any lien of any pledge is valid and binding against all parties that have claims of any kind against this state, regardless of whether the parties have notice of the lien. The official instrument by which a pledge is created, when adopted by the director, is notice to all concerned of the creation of the pledge, and the instrument need not be recorded in any other place to perfect the pledge. END_STATUTE

START_STATUTE23-665.06. Note purchase; cancellation

The director may purchase notes for cancellation out of any monies available for the purchase, at a price of not more than either of the following:

1. If the notes are redeemable at the time of the purchase, the applicable redemption price plus accrued interest to the next interest payment date on the notes.

2. If the notes are not redeemable at the time of the purchase, the applicable redemption price on the first date after the purchase on which the notes become subject to redemption plus accrued interest to that date. END_STATUTE

START_STATUTE23-665.07. Payment of notes

The notes shall be paid solely from monies in the note debt service fund. END_STATUTE

START_STATUTE23-665.08. Investment of note proceeds and note debt service fund monies

A. The director may authorize the note trustee to invest the note proceeds and monies in the note debt service fund.

B. The order directing an investment may state a specified time when the monies invested will be used. The note trustee shall make the investment in such a way so that the investment matures at the specified date.

C. Monies earned as interest or otherwise derived from the investment of the note proceeds or monies in the note debt service fund shall be used only for the purposes for which the monies invested may be used.

D. At the direction of the director, the note trustee may invest or reinvest note proceeds and monies in the note debt service fund in any investments authorized by section 35-313. The purchase of the securities shall be made by the note trustee on authority of the director. The note trustee shall act as custodian of all securities purchased. The securities may be sold on an order of the director. END_STATUTE

START_STATUTE23-665.09. Characteristics of notes

A. The notes are fully negotiable within the meaning and for all purposes of the uniform commercial code, subject only to any provisions for registration, regardless of whether the notes actually constitute negotiable instruments under the uniform commercial code.

B. The notes, their transfer and the income from the notes are at all times free from taxation in this state.

C. The notes:

1. Are payable only according to their terms.

2. Are not general, special or other obligations of this state.

3. Do not constitute a debt of this state.

4. Are not enforceable against this state nor is the payment of the notes enforceable out of any monies other than the revenue pledged and assigned to, or in trust for the benefit of, the holder or holders of the notes.

5. Are securities in which public officers and bodies of this state and of municipalities and political subdivisions of this state, all companies, associations and other persons carrying on an insurance business, all financial institutions, investment companies and other persons carrying on a banking business, all fiduciaries and all other persons who are authorized to invest in government obligations may properly and legally invest.

6. Are securities that may be deposited with public officers or bodies of this state and municipalities and political subdivisions of this state for purposes that require the deposit of government notes or obligations. END_STATUTE

START_STATUTE23-665.10. Effect of changing circumstances on notes; agreement of state

A. An amendment of any provision of this act does not diminish or impair the validity of notes issued under this act or the remedies and rights of noteholders.

B. This state pledges to and agrees with the holders of the notes that this state will not limit, alter or impair the rights and remedies of the noteholders, until all notes issued under this article, together with interest on the notes, interest on any unpaid installments of principal or interest and all costs and expenses in connection with any action or proceedings by or on behalf of the noteholders, are fully met and discharged. The director, as agent for this state, may include this pledge and undertaking in the instruments authorizing and securing the notes. END_STATUTE

START_STATUTE23-665.11. Validity of notes

A. This article constitutes full authority for authorizing and issuing the notes without reference to any other law of this state. No other law with regard to authorizing or issuing obligations or that in any way impedes or restricts performing the acts authorized by this article may be construed to apply to any proceedings taken or acts done pursuant to this article.

B. The validity of the notes does not depend on and is not affected by the legality of any proceeding relating to any action relating to application of the proceeds of the notes.

C. The notes shall recite that they are regularly issued pursuant to this article. That recital constitutes prima facie evidence of the legality and validity of the notes. From and after the sale and delivery of the notes, they are incontestable by the director or this state. END_STATUTE

START_STATUTE23-665.12. Compliance with federal tax requirements

All state officials shall comply with any requirement prescribed by the director deemed necessary to obtain or retain an exemption from federal income taxes for interest income on the notes.END_STATUTE

START_STATUTE23-665.13. Reports

A. Within fifteen days after the issuance of the notes, the department shall report to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting on the finalized debt issuance, including the principal amount, interest rate, the debt service schedule, the length of term, the interest to be paid over the life of the loan and the status of the bonds as taxable or non-taxable.

B. Thirty days after the end of each calendar quarter of fiscal year 2013-2014, the department shall report to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting concerning the status of the unemployment insurance system. Each quarterly report shall include the beginning balance in this state's account in the unemployment trust fund pursuant to 42 United States Code section 1103, revenue during the year, net assessment revenue, federal unemployment tax reduction revenue, fund outlays, the ending balance, interest charges on the loan, and any outstanding federal debt. Each report shall also provide quarterly estimates for each of these categories through the final quarter of calendar year 2014. END_STATUTE

Sec. 2. Section 23-727, Arizona Revised Statutes, is amended to read:

START_STATUTE23-727. Credits and charges to employer accounts

A. The commission shall maintain a separate account for each employer and shall credit the account with all contributions and payments in lieu of contributions paid by the employer and shall charge the account with all benefits chargeable to it.

B. Nothing in this chapter shall be construed to grant any employer or individuals in its service prior claims or rights to the amounts paid by the employer into the fund.

C. Except as otherwise provided in subsections D, E, F, G, I and J of this section and sections 23‑773 and 23‑777, benefits paid to an individual shall be charged against the accounts of the individual's base‑period employers. The amount of benefits so chargeable against each base‑period employer's account shall bear the same ratio to the total benefits paid to an individual as the base‑period wages paid to the individual by the employer bear to the total amount of base‑period wages paid to the individual by all the individual's base‑period employers.

D. Benefits paid to an individual whose separation from work with any employer occurs under conditions found by the commission to be within those prescribed by section 23‑775, paragraph 1 or 2 or for compelling personal reasons not attributable to the employer and not warranting disqualification for benefits shall not be used as a factor in determining the future contribution rate of the employer from whose employment the individual so separated, but the employer shall establish the condition of such separation to the satisfaction of the commission by submitting information the commission requires within ten days after the date of notification or mailing of notice by the commission that the individual has first filed a claim for benefits.

E. Benefits paid to an individual who, during the individual's base period, earned wages for part‑time employment with an employer shall not be used as a factor in determining the future contribution rate of that employer if the employer continues to give employment opportunities to the individual to the same extent while the individual is receiving benefits as during the base period and the employer submits information the commission may require within ten working days after the date of notification or mailing of notice by the commission that the individual has first filed a claim for benefits. The commission has the burden of proof to establish that the employer failed to give employment opportunities to the individual to the same extent as during the base period.

F. Benefits paid to an individual whose employment was terminated by retirement pursuant to a nongovernmental retirement or lump sum retirement pay plan under which the age of mandatory retirement has been agreed on between the employer and its employees or by the bargaining agent representing such employees shall not be used as a factor in determining the future contribution rate of that employer but the employer shall establish that fact by submitting information the commission may require within ten days after the date of notification or mailing of notice by the commission that the individual has first filed a claim for benefits.

G. Benefits paid pursuant to section 23‑771, subsections B and D shall not be used as a factor in determining the future contribution rate of the affected base‑period employers.

H. A determination that benefits paid shall be used in determining future contribution rates of the employer may be appealed by the employer in the same manner provided for appeals of benefit determinations.

I. Benefits paid to an individual whose employment was terminated because the individual's employer was called to active duty in the military shall not be used as a factor in determining the future contribution rate of the employer from whose employment the individual was terminated.

J. Benefits paid to an individual whose employment was terminated because a former employee of the employer returned to work for the employer after being called to active duty in the military shall not be used as a factor in determining the future contribution rate of the employer from whose employment the individual was terminated.

K. The commission shall not relieve an employer's account of charges relating to an erroneous benefit payment if the commission determines both of the following:

1. The erroneous benefit payment was made because the employer or an agent of the employer failed to timely or adequately respond to a written request from the commission for information relating to a claim for unemployment compensation.

2. The employer or the employer's agent has established a pattern of failing to timely or adequately respond to requests.

L. For the purposes of subsection K of this section:

1. "Erroneous benefit payment" means a payment that would not have been made but for the failure of the employer or the employer's agent to make a timely or adequate response as described in subsection K, paragraph 1 of this section in regard to the claim for unemployment compensation.

2. "Pattern of failing" means the repeated documented failure of an employer or employer's agent to make timely and adequate responses as described in subsection K, paragraph 1 of this section with consideration of the number of instances of failure in relation to the total number of requests. Pattern of failing shall be determined by reviewing the most immediate twelve month prior period. A pattern shall be established if the employer or the agent representing the employer has five or more failures or failures in more than five per cent of the number of requests, whichever is greater. When an agent is representing the employer, the five or more failures or failures in more than five per cent of the number of requests shall be specific to the individual employer's account. END_STATUTE

Sec. 3. Section 23-762, Arizona Revised Statutes, is amended to read:

START_STATUTE23-762. Requirements of shared work plan; approval

A. An employer wishing to participate in the shared work unemployment compensation program shall submit a signed, written shared work plan to the department for approval. The department shall approve a shared work plan only if the plan:

1. Specifies the employees in the affected group.

2. Applies to only one affected group.

3. If feasible, includes a description of the employer's plan for notifying an employee whose work week is to be reduced.

3. 4. Includes a certified statement by the employer that, for the six‑month period immediately preceding the date the plan is submitted, compensation was payable from the shared work employer, or its predecessor predecessors whether or not they were shared work employers, to each employee in the affected group in an amount equal to or greater than the wages for insured work in one calendar quarter as provided in section 23‑771, subsection A, paragraph 6. An employee who joins an affected group after the approval of the shared work plan is automatically covered under the previously approved plan, effective the week that the department receives written notice from the shared work employer that the employee has joined and certification from the employer that the employee meets the provisions of section 23‑771, subsection A, paragraph 6.

4. 5. Includes a certified statement by the employer that for the duration of the plan the reduction in the total normal weekly hours of work of the employees in the affected group is instead of layoffs which otherwise would result in at least as large a reduction in the total normal weekly hours of work. The employer shall include an estimate of the number of layoffs that would have occurred without an approved shared work plan.

5. 6. Specifies the manner in which the employer will treat fringe benefits of the employees in the affected group if the employees' hours are reduced to less than their normal weekly hours of work. The employer must certify, if the employer provides health benefits and retirement benefits under a defined benefit plan to any employee whose work week is reduced under the plan, that these benefits will continue to be provided to an employee participating in the shared work plan under the same terms and conditions as though the work week of the employee had not been reduced or to the same extent as other employees not participating in the shared work program.

6. 7. Specifies an expiration date which that is no more than one year from the date the employer submits the plan for approval, except that on written request by the employer, the department may approve an extension of the plan for a period of not more than one year from the date of the request.

7. 8. Is approved in writing by the collective bargaining agent for each collective bargaining agreement which that covers any employee in the affected group.

B. The plan prescribed in subsection A of this section and the implementation of the plan must be consistent with the employer's obligations under all other federal and state laws.

B. C. The department shall approve or disapprove the proposal plan within fifteen days of after receipt of the proposal plan by the department. The department shall notify the employer of the reasons for denial of a shared work plan within ten days of such the determination. END_STATUTE

Sec. 4. Section 23-763, Arizona Revised Statutes, is amended to read:

START_STATUTE23-763. Shared work benefits; eligibility; requirements

A. An individual is eligible to receive shared work benefits with respect to any week only if, in addition to meeting the requirements of article 6 of this chapter as modified by subsections D and subsection E of this section, the department finds that during the week:

1. During the week The individual is employed as a member of an affected group in an approved plan which that was approved prior to before the week and is in effect for the week.

2. During the week The individual's normal weekly hours of work were reduced at least ten per cent but not more than forty per cent.

3. The individual met the requirements of section 23‑771, subsection A, paragraphs 3 and 4.

B. Eligible individuals may participate in training to enhance job skills, including employer sponsored training or worker training funded under the workforce investment act of 1998, if the training is approved by the department.

B. C. The department shall not pay an individual shared work benefits for more than twenty‑six weeks in a benefit year, except that this limitation does not apply to a week if for the period consisting of the week and the immediately preceding twelve weeks the rate, not seasonally adjusted, of insured unemployment in this state is equal to or greater than four per cent.

C. D. The total amount of regular benefits and shared work benefits which that the department pays to an individual for weeks in his the individual's benefit year shall not exceed the total for the benefit year as provided in section 23‑780.

D. The department shall not deny an otherwise eligible individual benefits under this article because of the application of any provision of this chapter relating to availability for work, active search for work or refusal to apply for or accept work from other than the individual's shared work employer.

E. Notwithstanding section 23‑621 or any other provision of this chapter, for purposes of this article an individual is unemployed in any week for which compensation is payable to him the individual, as an employee in an affected group, for less than his the individual's normal weekly hours of work in accordance with an approved plan in effect for the week. END_STATUTE

Sec. 5. Section 23-771, Arizona Revised Statutes, is amended to read:

START_STATUTE23-771. Eligibility for benefits

A. An unemployed individual shall be eligible to receive benefits with respect to any week only if the department finds that the individual:

1. Has registered for work at and thereafter has continued to report at an employment office in accordance with such regulations as the department prescribes.

2. Has made a claim for benefits in accordance with section 23‑772.

3. Is able to work.

4. Except for an individual who is applying for shared work benefits pursuant to article 5.1 of this chapter, is available for work and both of the following apply:

(a) The individual has engaged in a systematic and sustained effort to obtain work during at least four days of the week.

(b) The individual has made at least three work search contacts during the week.

5. Has been unemployed for a waiting period of one week. A week shall not be counted as a week of unemployment for the purpose of this paragraph:

(a) Unless it occurs within the benefit year that includes the week with respect to which the individual claims payment of benefits.

(b) Unless the individual was eligible for benefits with respect thereto as provided in this section and sections 23‑775, 23‑776 and 23‑777.

6. Has met one of the following requirements:

(a) Has been paid wages for insured work during the individual's base period equal to at least one and one‑half times the wages paid to the individual in the calendar quarter of the individual's base period in which such wages were highest, and the individual has been paid wages for insured work in one calendar quarter of the individual's base period equal to an amount that is equal to at least three hundred ninety times the minimum wage prescribed by section 23‑363 that is in effect when the individual files a claim for benefits.

(b) Has for a benefit year beginning on or after September 2, 1984, been paid wages for insured work during at least two quarters of the individual's base period and the amount of such wages paid in one quarter would be sufficient to qualify the individual for the maximum weekly benefit amount payable under this chapter and the total of the individual's base‑period wages is equal to or greater than the taxable limit as specified in section 23‑622, subsection B, paragraph 1.

7. Following the beginning date of a benefit year established under this chapter or the unemployment compensation law of any other state and prior to the effective date of a subsequent benefit year under this chapter, has performed services whether or not in employment as defined in section 23‑615 for which wages were payable in an amount equal to or in excess of eight times the weekly benefit amount for which the individual is otherwise qualified under section 23‑779. In making a determination under this paragraph the department shall use information available in its records or require the individual to furnish necessary information within thirty days from the date notice is given that such information is required.

B. If an unemployed individual cannot establish a benefit year as defined in section 23‑609 due to receipt during the base period of compensation for a temporary total disability pursuant to chapter 6 of this title, or any similar federal law, the individual's base period shall be the first four of the last five completed calendar quarters immediately preceding the first day of the calendar week in which the disability began. Wages previously used to establish a benefit year may not be reused. This subsection does not apply unless all of the following occur:

1. The individual has filed a claim for benefits not later than the fourth calendar week of unemployment after the end of the period of disability.

2. The claim is filed within two years after the period of disability begins.

3. The individual meets the requirements of subsection A of this section.

4. The individual has attempted to return to the employment where the temporary total disability occurred.

C. If an unemployed individual is a member of the national guard or other reserve component of the United States armed forces, the individual shall not be considered to be either employed or unavailable for work by reason of the individual's participation in drill, training or other national guard or reserve activity that occurs on not more than one weekend per month or in lieu of a weekend drill or the equivalent.

D. The department shall not disqualify an individual from receiving benefits under this chapter on the basis of the individual's separation from employment if the individual is a victim of domestic violence and leaves employment due to a documented case involving domestic violence pursuant to section 13‑3601 or 13‑3601.02. Benefits paid to an individual pursuant to this subsection shall not be charged against an employer's account pursuant to section 23‑727, subsection G.

E. For the purposes of subsection A, paragraph 6 of this section, wages shall be counted as "wages for insured work" for benefit purposes with respect to any benefit year only if that benefit year begins subsequent to the date on which the employing unit by which those wages were paid has become an employer subject to this chapter. END_STATUTE

Sec. 6. Section 23-772, Arizona Revised Statutes, is amended to read:

START_STATUTE23-772. Claims for benefits; notice to employer; posting printed statements dealing with claims

A. Claims for benefits shall be made in accordance with such regulations as the department prescribes.

B. All base period base-period employers of a claimant for benefits shall be promptly notified when a claimant files an initial a payable continued claim for benefits during a period of unemployment.

C. Each employer shall post and maintain printed statements dealing with claims for benefits in places readily accessible to individuals in his the employer's service, and shall make available to each individual at the time he the individual becomes unemployed, a printed statement dealing with claims for benefits. Printed statements shall be supplied by the department to each employer without cost. END_STATUTE

Sec. 7. Section 23-787, Arizona Revised Statutes, is amended to read:

START_STATUTE23-787. Repayment of and deductions for benefits obtained by claimants not entitled to benefits; collection

A. A person who receives any amount as benefits under this chapter to which the person is not entitled is liable to repay the overpaid amount to the department. The department may deduct all or a portion of the overpayment from future benefits payable to the person under this chapter.

B. If benefits to which a person is not entitled are received by reason of fraud committed by the person as determined by the department, the department shall assess a penalty on the person equal to fifteen per cent of the amount of the erroneous payment and the person is not eligible to receive any benefits under this chapter until the total amount of the overpayment has been recovered or otherwise satisfied in compliance with a civil judgment. The department shall immediately deposit all assessments paid pursuant to this subsection in the unemployment compensation fund established by section 23-701.

C. If benefits to which a person is not entitled are received without any fault on the person's part and if repayment or deduction from future benefits would be against equity and good conscience, the department may waive all or a portion of the amount overpaid.

D. If benefits to which a person is not entitled are received without any fault on the person's part, deductions made by the department pursuant to subsection A of this section from benefits payable to an individual for any week shall not exceed twenty‑five per cent of the individual's weekly benefit amount unless required by federal law, except that the amount recouped from benefits payable may be fifty per cent of the weekly benefit amount if the individual has previously received benefits but has not received benefits for at least twelve consecutive months prior to before the most recent receipt of benefits and there has been no reasonable attempt to repay the indebtedness during that period. The fifty per cent recoupment rate may not be put in effect prior to before one year after the establishment of the overpayment.

E. The department shall adopt rules to implement the provisions of subsection D of this section.

F. The attorney general or the appropriate county attorney may institute appropriate court proceedings to recover in the name of the department any amount for which a person is liable to the department. END_STATUTE

Sec. 8. Section 29-857, Arizona Revised Statutes, is amended to read:

START_STATUTE29-857. Taxation

A limited liability company established under this chapter or a foreign limited liability company transacting business in this state pursuant to this chapter shall pay the taxes that are imposed by the laws of this state or any political subdivision of this state on domestic and foreign limited partnerships on an identical basis, except that, for purposes of title 23, chapter 4 and title 43, a domestic or foreign limited liability company and its members shall be taxed as if the limited liability company is either a partnership or a corporation or is disregarded as an entity as determined pursuant to the internal revenue code as defined in section 43‑105. END_STATUTE

Sec. 9. Transfer of monies

Any monies remaining in the unemployment special assessment fund established by section 23-730.01, Arizona Revised Statutes, as added by Laws 2011, chapter 218, section 2 are transferred for deposit in the unemployment special assessment proceeds fund established by section 23-665.02, Arizona Revised Statutes, as added by this act.

Sec. 10. Delayed repeal

Title 23, chapter 4, article 2.1, Arizona Revised Statutes, as added by this act, is repealed from and after December 31, 2015.

Sec. 11. 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.