ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

Senate 3rd Read: 30-0-0-0    

SB 1694: unemployment compensation; coronavirus disease

(Substituted for HB 2911)

Sponsor:  Senator Fann (with permission of committee on Rules), LD 1

Transmitted to the Governor

Overview

Retroactive to March 11, 2020, an emergency measure that permits the Arizona Department of Economic Security (DES) to establish an alternative unemployment insurance (UI) benefit program for people impacted by the coronavirus disease (COVID-19). 

History

Employees becoming unemployed through no fault of their own may be eligible for UI benefits, which are based on a formula outlined in statute. 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)

Unemployed workers are eligible to receive UI benefits if they earned wages for insured work, register to work and fill out the necessary claim forms. These workers must regularly report to the DES employment office, be able to work, available for work and then search for work as outlined for at least four days per week, making at least one job contact each day. (A.R.S. § 23-771)

The U.S. Department of Labor, Employment and Training Administration, issued the Unemployment Insurance Program Letter No. 10-20 in mid-March 2020. The letter provides guidance to states regarding unemployment compensation flexibility for individuals affected by COVID-19. 

Arizona Governor Douglas A. Ducey issued a declaration of Public Health Emergency in order to prepare, prevent, respond to and mitigate the effects related to the COVID-19 virus. The Executive Order was issued March 11, 2020.

Provisions

1.    ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☒ Emergency (40 votes) ☐ Fiscal NoteAs session law, authorizes DES to establish alternative UI benefit eligibility and employer contribution requirements that meet Federal guidelines set by the U.S. Department of Labor for individuals and businesses impacted by the COVID-19 virus.  (Sec. 1) 

2.    When setting the employer's contribution rate for the UI program, prohibits DES from considering any increased benefits charged against the employer's account as a result of the alternative benefits for individuals affected by COVID-19.  (Sec. 1)

3.    Permits DES to modify the eligibility requirements for the shared work program during the COVID-19 emergency declaration period, except DES cannot approve any individual's shared work benefits that have been reduced by more than 80%.  (Sec. 1)

4.    Authorizes DES to adopt pertinent rules to administer the program.  (Sec. 1)

5.    Exempts DES from the Administrative Procedures Act and the requirements for the formal rulemaking process.  (Sec. 1)

6.    Contains an intent clause.  (Sec. 2)

7.    Contains a retroactivity clause of March 11, 2020.  (Sec. 3)

8.    Contains an emergency clause.  (Sec.4)

 

 

 

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                        SB 1694

Initials     _DC___       Page 0 Transmitted

 

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