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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
unemployment insurance; benefits; duration
Purpose
Decreases, beginning January 1, 2022, the maximum number of weeks an individual may receive unemployment benefits if Arizona's average unemployment rate is at or below nine percent.
Background
The federally-established Unemployment Insurance Benefit Program, administered by the Department of Economic Security according to state law, provides unemployment benefits to persons unemployed through no fault of their own. Benefit payments are paid from Arizona's Unemployment Insurance Trust Fund which is funded by a tax paid by employers (A.R.S. Title 23, Chapter 4).
An unemployed individual's weekly benefit amount (WBA) is based on the wages the individual earned during the first four of the last five completed calendar quarters before the individual became unemployed (base period). Subject to a cap of $240, the WBA of an eligible unemployed individual is equal to one twenty-fifth of their highest quarter earnings during the base period. An eligible individual is entitled to receive their WBA for 26 weeks, except that the total benefits in a benefit year may not exceed one-third of the individual's base period earnings (A.R.S. §§ 23-779 and 23-780).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Decreases the maximum number of weeks an individual may receive unemployment benefits to:
a) 12 times the individual's WBA, if Arizona's average unemployment rate is at or below five and one-half percent; and
b) 12 times the WBA plus an additional week for each one-half percent increment above five and one-half percent, if Arizona's average unemployment rate is at or below nine percent but above five and one-half percent.
2. Defines average unemployment rate as the average of the three months for the most recent third calendar year quarter of the seasonally adjusted unemployment rates as published by the Office of Economic Opportunity.
3. Titles the legislation as the Unemployment Insurance Sustainability Act of 2021.
4. Makes technical and conforming changes.
5. Becomes effective on January 1, 2022.
Prepared by Senate Research
February 15, 2021
LB/kja