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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
AMENDED
unemployment benefits; requirements; disqualifications
Purpose
Modifies the factors that an unemployed individual must meet in order to be eligible for Unemployment Insurance (UI) benefits. Requires the Department of Economic Security (DES) to cross-check the validity of UI benefit claims against prescribed data sets.
Background
The federally-established UI Benefit Program, administered by DES according to state law, provides UI benefits to persons unemployed through no fault of their own. Statute prescribes eligibility requirements relating to the reason for separation from employment, wages earned prior to unemployment and the individual's availability and work search activities (A.R.S. Title 23, Chapter 4).
An unemployed individual is eligible to receive UI benefits with respect
to any week only if DES finds that the individual: 1) has registered for work
at and thereafter has continued to report at the employment office in
accordance with the regulations prescribed by DES; 2) has made a claim for UI
benefits in accordance with statute; 3) is able to work; 4) is available for
work, the individual has engaged in a systematic and sustained effort to obtain
work during the last four days of the week and the individual has made at least
one job contact per day on four different days of the week; and 5) has been
unemployed for a waiting period of one week. An individual must be disqualified
for UI benefits if DES finds the individual has failed without cause to apply
for available suitable work, when so directed by the employment office or DES,
to actively engage in seeking work, to accept suitable work when offered or to
return to the individual's customary
self-employment when so directed by DES (A.R.S. §§ 23-771
and 23-776).
A representative designated by DES as a deputy must promptly examine any claim for UI benefits and, based on the facts found by the deputy, determine whether the claim is valid. The deputy must promptly notify the claimant of the determination and the reasons for the determination. Unless the claimant files an appeal within seven calendar days after the delivery of the notification, or within 15 calendar days after notification was mailed, the determination becomes final (A.R.S. § 773).
There is no anticipated fiscal impact to the State General Fund associated with this legislation.
Provisions
Eligibility for Benefits
1. Adds the requirement that an unemployed individual, to be eligible for UI benefits, must actively seeks and apply for suitable work and:
a) conduct at least five work search actions each week to qualify as actively seeking and applying for suitable work that includes any of the following:
i. submitting resumes to employers;
ii. completing job applications and submitting the applications to employers;
iii. attending job fairs that are recognized by DES and the individual's attendance is verifiable by DES;
iv. attending interviews with potential employers; and
v. attending a DES-approved training program, which must count as one work search action for the week the individual attended the training program; and
b) provide a weekly report to DES that details the individual's work search actions for every week a benefit is sought, if the individual is applying for a weekly benefit.
2. Removes the requirement that an unemployed individual, to be eligible for UI benefits, do the following:
a) be engaged in a systematic and sustained effort to obtain work during at least four days of the week; and
b) has made at least one job contact per day on four different days of the week.
Examination and Determination of Claims
3. Prohibits DES, in determining the validity of claims in accordance with statute, from paying benefits for an initial or ongoing claim until:
a) the initial claim is cross-checked; or
b) an ongoing claim is cross-checked on a weekly basis.
4. Stipulates that the initial or ongoing claim is cross-checked against the following data sets:
a) the National Association of State Workforce Agencies' Integrity Data Hub;
b) the U.S. Department of Health and Human Services National Directory of New Hires;
c) the DES's new hire reporting system;
d) the Arizona Department of Corrections, Rehabilitation and Reentry's inmate databases;
e) the Social Security Administration's Prisoner Update Processing System;
f) the Center for Disease Control and Prevention's National Vital Statistics System's death records database; and
g) the Arizona Department of Health Services Bureau of Vital Records death records database.
5. Prohibits a claim from being paid, if a cross-check results in information indicating that the claim is ineligible or fraudulent.
6. Requires the claimant to be disqualified from receiving benefits and referred to prosecution, if a cross-check results in information indicating that the claim is ineligible or fraudulent.
7. Requires DES to examine any initial claim for benefits and confirm its validity before benefits are paid if the initial claim:
a) was submitted electronically through an internet protocol address located outside Arizona or the United States;
b) references a mailing or residential address for which another current claim was submitted; or
c) is associated with a direct deposit for a bank account already used for another current claim.
8. Allows DES to refer a matter for prosecution if a fraudulent claim was filed.
Disqualification from Benefits
9. Specifies that an individual is disqualified for UI benefits if DES finds that the individual has failed without cause to:
a) actively seek and apply for suitable work;
b) accept an offer of suitable work; or
c) accept reemployment.
10. Requires an employer to report to DES when an individual who was previously employed with the employer does any of the following:
a) refuses to return to work;
b) refuses to accept an offer of suitable work;
c) fails, without cause, to appear for a scheduled interview; or
d) fails to respond to an offer of employment.
11. Requires DES to allow employers to submit the reports digitally or through email.
12. Requires DES to conduct an independent review of each report to determine whether an individual should be disqualified from receiving benefits.
Miscellaneous
13. Makes technical and conforming changes.
14. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Clarifies that required work search actions include:
a) submitting resumes to employers;
b) completing job applications and submitting the applications to employers; and
c) attending job fairs that are recognized by DES and the individual's attendance is verifiable by DES.
2. Makes conforming changes.
House Action Senate Action
COM 2/14/23 DPA 6-3-1-0 COM 2/22/23 DPA 5-2-0
3rd Read 3/7/23 31-29-0
Prepared by Senate Research
March 24, 2023
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