Chapter 0015 - 531R - S Ver of SB1166

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

Section 1. Section 23-724, Arizona Revised Statutes, is amended to read:

START_STATUTE23-724. Liability determinations; review; finality

A. If 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 becomes final with respect to the employing unit sixty thirty 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.

B. If 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 becomes 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 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. 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 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 that warrants a revised determination, reconsidered determination or decision.

D. The effective date of a revision under subsection C 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 not 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 that good cause is demonstrated, the effective date shall be is the date of the change.

E. A refusal to grant relief under subsection C of this section may not be appealed unless within thirty days the employer appeals the refusal to the appeals board. The employer's appeal shall be filed either electronically or in writing. Notwithstanding any other provision of law and pursuant to the appeal, the appeals board may initiate hearings to obtain information and issue a decision as to whether the relief requested in subsection C of this section should be granted. Thereafter, the appeals board shall issue a decision in the matter. The decision of the appeals board may not be appealed with respect to the employing unit unless a request for judicial review is filed within the time and in the manner provided in section 41‑1993.

F. 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. 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. If any determination covered by subsection G of this section is defective because it the determination fails to meet the requirements of subsection G 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. This section does not preclude the department from at any time correcting clerical errors that have occurred in the administration of this chapter.

J. 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

Sec. 2. Section 23-726, Arizona Revised Statutes, is amended to read:

START_STATUTE23-726. Contributions; voluntary payment

A. Contributions shall accrue and become payable by each employer for each calendar year in which the employer is subject to this chapter with respect to wages for employment. The contributions shall become due and be paid by each employer to the commission for the fund in accordance with such regulations as the commission prescribes, and shall not be deducted, in whole or in part, from the wages of individuals in the employer's employ.

B. In the payment of contributions, a fractional part of a cent shall be disregarded unless it amounts to one‑half cent or more in which case it shall be increased to one cent. 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.

C. An employer may make voluntary payments in addition to the contributions required under this chapter that shall be credited to the employer's account in accordance with commission regulation. The voluntary payments shall be included in the employer's account as of the employer's most recent computation date if they are made on or before the following January 31 February 28. Voluntary payments when accepted from an employer will not be refunded in whole or in part.

D. The payment of contributions is not required if the quarterly amount of the contribution or taxes is less than ten dollars. END_STATUTE

Sec. 3. Section 23-738, Arizona Revised Statutes, is amended to read:

START_STATUTE23-738. Delinquency assessments; interest and penalties; petition for reassessment

A. If an employer neglects or refuses to make a return as required by this chapter, the department shall make an estimate based upon on information in its the department's possession of the amount of contributions due from the employer for the period for which he the employer failed to make a return, and shall assess the estimated amount against the delinquent employer. The department shall add to the delinquency assessment made under this section the penalty provided in section 23‑723 and interest as prescribed by section 23‑736. If the neglect or refusal to file a return is due to fraud or an intent to evade payment of contributions, there shall be added to the amount due a penalty equal to twenty‑five per cent percent thereof. The department shall promptly notify the delinquent employer of any estimate.

B. An employer against whom any delinquency assessment is made may petition for reassessment within fifteen thirty days after written notice of the assessment is served personally or sent by certified mail to the employer's last known address. If the petition for reassessment is not filed within fifteen thirty days the amount of the assessment shall become final and the lien imposed by section 23‑745 shall attach attaches. END_STATUTE

Sec. 4. Section 23-738.01, Arizona Revised Statutes, is amended to read:

START_STATUTE23-738.01. Deficiency assessment; petition for reassessment

A. If the department finds through its audit or claims‑taking procedures that the return filed by an employer is deficient, the department may compute the amount required to be paid on the basis of any information in its the department's possession and make an assessment of the amount of the deficiency. The department shall add to the deficiency assessment made under this section, subject to waiver for good cause shown, a penalty of one‑tenth of one per cent percent of the difference between the wages paid during the quarter and the wages reported during the quarter, but not more than two hundred dollars and interest as prescribed by section 23‑736. If the deficiency is due to fraud or an intent to evade payment of contributions, the department shall add to the amount due a penalty equal to twenty‑five per cent percent of the amount due. The department shall promptly notify the employer of any deficiency.

B. An employer against whom a deficiency assessment is made may petition for reassessment within fifteen thirty days after written notice of the assessment is served personally or sent by certified mail to the employer's last known address. If the petition for reassessment is not filed within fifteen thirty days, the amount of the assessment becomes final and the lien imposed by section 23‑745 attaches. END_STATUTE

Sec. 5. 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; interest

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 percent 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 and all penalties and interest have been recovered, waived 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 percent 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 percent of the weekly benefit amount if the individual has previously received benefits but has not received benefits for at least twelve consecutive months 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 percent recoupment rate may not be put in effect before one year after the establishment of the overpayment.

E. The department shall adopt rules to implement 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.

G. Interest on all benefit overpayment debts, including those reduced to judgment, shall accrue at ten percent a year. The department may waive a portion of any accrued interest on a benefit overpayment debt for good cause shown. For benefit overpayment debts classified as fraud, the amount of interest waived may not exceed twenty‑five percent. END_STATUTE