State SealARIZONA HOUSE OF REPRESENTATIVES

 

SB 1205: unemployment insurance; educational employers; interest

PRIME SPONSOR: Senator Fann, LD 1

BILL STATUS: Caucus & COW

                COM: DP 8-0-0-1

Legend: DES – Department of Economic Security UI – Unemployment Insurance Amendments – BOLD and Stricken (Committee)

Abstract

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRelating to payments for UI benefits.

Provisions

1.       For individuals who provide services to multiple educational employers, UI benefits are only payable if there is no contract or reasonable assurance of work between or within terms of service. (Sec. 1)

2.       Directs the waived interest on an overpayment involving fraud to be treated as though it was recovered. (Sec. 2)

3.       Clarifies that DES cannot waive any fraud overpayments and penalties, except as noted. (Sec. 2)

4.       States that DES cannot collect any overpayments or interest that DES waives. (Sec. 2)

5.       Permits DES to accept voluntary payments. (Sec. 2)

6.       Removes archaic language. (Sec. 1)

7.       Makes technical and conforming changes. (Sec. 1, 2)

Current Law

Persons who are unemployed through no fault of their own may qualify for UI benefits, which are based on a formula outlined in statute and calculated according to earned wages. The weekly UI benefits are calculated according to wages earned from employers who paid unemployment taxes to the State of Arizona. The benefit amount is 4% of the wages paid in the highest quarter of the worker's base period, with the current maximum set at $240 per week. (A.R.S. § 23-779)

Statute requires any overpayment of benefits to a UI recipient to be repaid, with DES having the option to deduct all or any portion of the amount from future UI benefits. If DES determines a person received benefits through fraud, DES must assess a penalty of 15% of the amount erroneously paid out. The person is ineligible for benefits until the total amount is repaid, including all penalties and interest. Monies are deposited into the UI Fund. (A.R.S. § 23-787)

Interest is 10% on any benefit overpayment debts, including those through court judgment, but DES may waive a portion for good cause shown. For overpayments of UI benefits that involve fraud, statute caps the interest that DES may waive at 25%. (A.R.S. § 23-787)

 

 

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Fifty-third Legislature                  SB 1205

Second Regular Session                               Version 2: Caucus & COW

 

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