Assigned to COM FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
REVISED
FACT SHEET FOR S.B. 1167
unemployment insurance; benefit amounts; definition
Purpose
Modifies the schedule outlining the duration during a benefit year in which an eligible
individual is entitled to awards of unemployment insurance (UI) benefits.
Background
The federally-established UI 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. 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 otherwise eligible individual is entitled during a benefit year to a weekly benefit amount
(WBA) for the following durations: 1) 24 weeks, if the prior calendar quarter unemployment rate
(UR) is less than 5 percent; or 2) 26 weeks, if the prior calendar quarter UR is 5 percent or more
(A.R.S. § 23-780). Subject to a cap of $320, the WBA of an eligible unemployed individual is
equal to 1/25 of their highest quarter earnings during the first four quarters of the most recently
completed five quarters. An unemployed individual may earn up to $160 in a week for less than
full-time work with no reduction to their WBA. Earnings in excess of the $160 income disregard
are subtracted from the WBA for which the individual qualifies (A.R.S. § 23-779).
Benefit payments are paid from Arizona's Unemployment Insurance Trust Fund (UITF)
which is financed by a tax that employers pay on the first $8,000 of wages paid to each employee
in a calendar year (A.R.S. Title 23, Chapter 4). A state with an insolvent UITF may receive an
advance from the Federal Unemployment Account and is eligible for the loan interest-free if, in
the last five years, the state's UITF reached the federal solvency standard and the state maintained
tax effort criteria (20 CFR § 606.32).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Modifies the schedule outlining the duration during a benefit year in which an eligible
individual is entitled to awards of UI benefits as follows:
a) 12 weeks, if the prior calendar quarter UR is 5 percent or less
b) 13 weeks, if the prior calendar quarter UR is more than 5 percent but no more than 5.5
percent; FACT SHEET – Revised
S.B. 1167
Page 2
c) 14 weeks, if the prior calendar quarter UR is more than 5.5 percent but no more than 6
percent;
d) 15 weeks, if the prior calendar quarter UR is more than 6 percent but no more than 6.5
percent;
e) 16 weeks, if the prior calendar quarter UR is more than 6.5 percent but no more than 7
percent;
f) 17 weeks, if the prior calendar quarter UR is more than 7 percent but no more than 7.5
percent;
g) 18 weeks, if the prior calendar quarter UR is more than 7.5 percent but no more than 8
percent;
h) 19 weeks, if the prior calendar quarter UR is more than 8 percent but no more than 8.5
percent; and
i) 20 weeks, if the prior calendar quarter UR is more than 8.5 percent.
2. Makes conforming changes.
3. Become effective on the general effective date.
Revision
• Corrects, as noted in the Background, the unemployment taxable wage base of each employee
in a calendar year as the first $8,000, rather than the first $7,000.
Prepared by Senate Research
February 13, 2023
JT/sr