Assigned to COMPS FOR
COMMITTEE
Assigned to COMPS FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
unemployment insurance; educational employers; interest
Purpose
Establishes conditions for the payment of unemployment insurance benefits to an individual providing services to multiple educational employers.
Background
Arizona’s Unemployment Insurance (UI) program, administered by the Department of Economic Security (DES), provides a measure of economic security to a qualified worker when unemployment occurs beyond the worker’s control (A.R.S. § 23-601). If an applicant for UI benefits has multiple educational employers, DES determines eligibility based on services that are provided to an employer that did not provide a contract or reasonable assurance of work for the next year or term (A.R.S. § 23-750). The United States Department of Labor requires DES to adopt one of two options for determining UI eligibility in multiple-employer situations (UI Program Letter No. 5-17). S.B. 1205 adds Option 1 to statute.
A person who receives overpayment of UI benefits is liable to DES for the overpaid amount. If the benefits are received without fault, DES may waive all or part of the overpaid amount if repayment or deductions from future benefits would violate equity and good conscience (A.R.S. § 23-787). If the benefits are obtained fraudulently, DES must assess a 15 percent penalty on the amount of the erroneous payment. Laws 2017, Chapter 15 requires 10 percent interest to accrue on overpayment debt, but allows DES to waive a portion of the accrued interest.
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Limits, for individuals providing services to multiple educational employers, payment of UI benefits between or within terms to only the services provided to an employer not providing a contract or reasonable assurance of work.
2. Prohibits DES from waiving benefit overpayments and assessed penalties for individuals that fraudulently obtained UI benefits.
3. Specifies that overpayment and interest amounts waived by DES must be treated as recovered amounts and may not be collected.
4. Allows DES to accept voluntary repayments for erroneously received UI benefits.
5. Makes technical changes.
6. Becomes effective on the general effective date.
Prepared by Senate Research
January 25, 2018
GH/lb