HB2113 - 522R

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

Section 1. Section 23-672, Arizona Revised Statutes, is amended to read:

START_STATUTE23-672. Appeals board; review of board decision

A. Within the department, an appeals board is established consisting of four members. The director shall appoint the members of the appeals board and shall designate one member to serve as chairman.

B. Hearings conducted by or at the direction of the appeals board shall be conducted as provided by section 23‑674 and other provisions of this chapter. The department shall prescribe by rule the procedures for petitioning for review, removal of cases to the board and appeals under section 23‑673. An interested party may file either a written or electronic petition for review. On the filing of a petition for review, the department shall prepare a complete record unless the parties stipulate otherwise.

C. In any case in which a petition for review of an appeal tribunal or hearing officer decision has been filed by an interested party, the appeals board may remand the case to any appeal tribunal or hearing officer for further proceedings or may review the matter on the basis of the record in the case, take additional evidence or rehear the matter and affirm, reverse, modify or set aside the decision of the appeal tribunal or hearing officer. On notice to the interested parties, a petition for review may be reviewed by one member of the appeals board designated by the chairman. If an interested party objects to review by one board member, the matter shall be heard by three members of the appeals board.

D. Unless a petition for hearing or review of a department determination made under article 5 of this chapter is withdrawn, the appeals board after affording the parties reasonable opportunity for a fair hearing shall issue its decision.

E. Every decision of the appeals board shall be in writing. If the decision is issued by three members of the appeals board, and the appeals board is not unanimous, the decision of the majority shall control. The minority may file a dissent from the decision, setting forth the reasons for the dissent. All interested parties shall be promptly notified of the decision and the reasons for the decision. Notice to the parties of the decision shall be accompanied by instructions explaining the procedure for requesting review as described in subsection F of this section and clearly indicating the final date for filing a request for review.

F. A party dissatisfied with the decision under subsection E of this section may file a request for review within thirty days from after the date of the decision, which shall be a written or electronic request and memorandum stating the reasons why the appeals board's decision is in error and containing appropriate citations of the record, rules and other authority. On motion, and for good cause, the appeals board may extend the time for filing a request for review. The timely filing of such a request for review is a prerequisite to any further appeal. The appeals board shall notify all parties of the filing of a request for review and shall allow fifteen days from the date of the notice for any party to respond. Thereafter, within ninety days after the request for review is filed, the appeals board shall issue a decision on review affirming, modifying or reversing its the decision, or ordering the taking of additional testimony. All parties shall be given written notice by mail of the decision on review.

G. If an employing unit files a timely request and the appeals board does not issue a decision on review pursuant to subsection F of this section, the decision shall be deemed in favor of the employing unit's request for reconsideration, petition for hearing or review or request for review and, to the extent applicable, on written notice from the employing unit of the expiration of the ninety‑day period prescribed by subsection F of this section, the department shall provide refunds or adjustments pursuant to section 23‑741 or 23‑742. The written notice prescribed in this subsection is effective on the date that the written notice is postmarked, delivered by fax or hand delivered to the department. Any action taken by the department or the appeals board after receipt of the written notice is untimely. END_STATUTE

Sec. 2. Section 23-724, Arizona Revised Statutes, is amended to read:

START_STATUTE23-724. Liability determinations; review; finality

A. When the department makes a determination, which determination shall be made either on the motion of the department or on application of an employing unit, that an employing unit constitutes an employer as defined in section 23‑613 or that services performed for or in connection with the business of an employing unit constitute employment as defined in section 23‑615 that is not exempt under section 23‑617 or that remuneration for services constitutes wages as defined in section 23‑622, the determination shall become final with respect to the employing unit sixty days after written notice is served personally, by electronic transmission or by certified mail if the determination was made on the basis of section 23‑613.01, or by first class mail if the determination was made by any other basis, addressed to the last known address of the employing unit, unless within such time the employing unit files a written request for reconsideration. If an employing unit files a timely request for reconsideration as prescribed by this subsection, the department shall issue the reconsideration determination within one year after the date the request for reconsideration is filed.

B. When a request for reconsideration is filed as prescribed in subsection A of this section, a reconsidered determination shall be made. The reconsidered determination shall become final with respect to the employing unit thirty days after written notice of the reconsidered determination is served personally, by electronic transmission or by mail addressed to the last known address of the employing unit, unless within such time the employing unit files with the appeals board a written petition for hearing or review. The department may for good cause extend the period within which the written petition is to be submitted. If an employing unit files a timely petition for hearing or review as prescribed by this subsection, the appeals board shall conduct the hearing within ninety days after the petition for hearing or review is filed. If the reconsidered determination is appealed to the appeals board and the decision by the appeals board is that the employing unit is liable, the employing unit shall submit all required contribution and wage reports to the department within forty‑five days after the decision by the appeals board.

C. If the department does not issue a reconsideration determination or the appeals board does not conduct a hearing within the time frames provided in subsection A or B of this section, the decision shall be deemed in favor of the employing unit's request for reconsideration or petition for HEARING OR review and, to the extent applicable, on written notice from the employing unit of the expiration of the time frame prescribed by subsection A or B of this section, the department shall provide refunds or adjustments pursuant to section 23‑741 or 23‑742. The written notice required by this subsection is effective on the date that the written notice is postmarked, delivered by fax or hand delivered to the department. Any action taken by the department or the appeals board after receipt of the written notice is untimely.

C. D. On an employer's written request and the submission of pertinent information to the department, the department shall, or on its own motion may, consider whether a determination, reconsidered determination or decision which that has become final should be revised. Revision shall be granted if either:

1. There has been a substantial and material change in the facts on which the determination, reconsidered determination or decision relied.

2. There has been a change in the law or interpretation of the law which that warrants a revised determination, reconsidered determination or decision.

D. E. The effective date of a revision under subsection C D of this section is either:

1. The date on which the change occurred if the employer's request with the pertinent information is filed no later than the last day of the month immediately subsequent to the calendar quarter in which the change occurred.

2. The first day of the calendar quarter in which the employer files the request and submits the pertinent information unless the employer demonstrates to the satisfaction of the department that good cause exists for the failure to notify the department within the period prescribed by paragraph 1 of this subsection of the occurrence of the change warranting the revision. In the event such good cause is demonstrated, the effective date shall be the date of the change.

E. F. A refusal to grant relief under subsection C D of this section may not be appealed unless within thirty days the employer appeals the refusal to the appeals board. Notwithstanding any other provision of law and pursuant to such an appeal, the appeals board may initiate hearings to obtain information and issue a decision as to whether the relief requested in subsection C D of this section should be granted. Thereafter, the appeals board shall issue a decision in the matter. The decision may not be appealed with respect to the employing unit unless petition for review and request for review are filed within the time and in the manner provided in section 23‑672.

F. G. The determination of the department or decision of the appeals board, together with the record, shall be admissible in any subsequent judicial proceeding involving liability for contributions. A determination or decision that an employing unit is liable that has become final shall be conclusive and binding on the employing unit and shall not be reconsidered in proceedings brought before the department or a hearing officer.

G. H. Any determination issued on the basis of section 23‑613.01 pursuant to subsection A of this section and any reconsidered determination issued pursuant to subsection B of this section and any contribution rate redetermination or denial issued pursuant to section 23‑732, subsection A shall contain the following:

1. The facts considered and the facts relied on in making the determination.

2. The specific statutes, regulations or other authority relied on in making the determination.

3. The reasoning applied in making the determination.

4. The appeal rights related to the determination and the time period after which the determination becomes final.

H. I. If any determination covered by subsection G H of this section is defective because it fails to meet the requirements of subsection G H of this section, the defect may be cured by issuance of a corrected, amended or new determination. If a defect is alleged and specified in writing within the period for appeal, all time periods applicable to the determination are suspended pending the curative action.

I. J. This section does not preclude the department from at any time correcting clerical errors that have occurred in the administration of this chapter.

J. K. A determination, reconsidered determination, revision or refusal to grant relief under this section may be served by electronic means if the party being served consents in writing to service by electronic means. Service by electronic means is deemed complete on transmission. END_STATUTE