A bill to increase maximum weekly unemployment benefits and impose some restrictions almost ran out of time in the Senate Commerce Committee on Feb. 25 but at the urging of its sponsor won unanimous approval.

Sen. Carolyn Allen’s measure was forwarded by the committee 8-0 after she expressed concern that it came up ninth of 10 items on the agenda, just minutes before the committee was to adjourn for Senate floor session. The committee had spent more than an hour on another bill, which deals with direct purchase of wine from small out-of-state wineries.

Ms. Allen, R-8, asked the committee to vote her bill out without testimony “because we took so much time on wine,” and were it delayed until next week, she would be unable to attend because her husband is scheduled to have surgery.

She said union representatives, who opposed the bill last year over eligibility restrictions placed on it by the House, were still negotiating this year’s bill. Governor Napolitano vetoed the 2003 bill.

The current bill will be amended, Ms. Allen said. “It is a work in progress” to avoid a veto.

This year’s bill is nearly identical to last year’s Senate bill, which was heavily amended in the House before it passed the Legislature and was vetoed by Governor Napolitano.

Ms. Napolitano cited House changes to eligibility requirements as the reason she vetoed S1009.

“The effect of the amendments is to preclude thousands of Arizonans from receiving unemployment benefits during difficult economic times,” Ms. Napolitano said, referring to amendments regarding seasonal employment and the number of weeks of work that must be recorded before qualifying for benefits.

The governor has pledged to work with unions, business and Ms. Allen toward “a balanced, fair unemployment insurance bill.”

Measure Increases Weekly UI Pay

The current legislation, S1206, increases the maximum weekly unemployment insurance benefit, redefines eligibility requirements and adjusts employer contributions to the Unemployment Insurance Program.

The bill calls for an increase in unemployment benefits to $230 per week from $205, beginning July 1, and to $240 from $230 July 1, 2005.

“This actually is one of the most important issues that this Legislature will deal with,” said Sen. Jay Tibshraeny, R-21. “This is something that needs to happen in this state. Arizona doesn’t need to continually be last in every category. This is a critical issue.”

Arizona ranks last among the states in maximum unemployment benefits at $205 per week.

The bill increases to $1,500 from $1,000 the minimum quarterly earnings required for eligibility and sets 20 weeks of paid wages as a condition for eligibility.

An employee who is a victim of documented domestic violence may not be disqualified from benefits for that reason, under the bill. But people in jail would not be eligible for benefits during their incarceration.

The legislation reduces to 2 per cent from 2.7 per cent the standard contribution to the Unemployment Insurance Program from employers that do not have established unemployment reserve ratios. At the same time, it reduces to .025 per cent from .05 per cent the contribution rate for employers that have a positive reserve ratio of 13 per cent or greater. This refers to an excess of contributions paid to the state over benefits charged according to the employer’s average annual payroll tax.

The bill also stipulates that retail employment is “seasonal” if specific conditions are met, such as if a substantial slowdown occurs for more than one year because of the seasonal nature of the business.

Wages of seasonal workers used to determine unemployment benefits may not be, under the bill, what the workers were paid during a slowdown.

Rate Of Unemployment Has Declined

Meanwhile, Arizona’s rate of unemployment declined significantly in 2003, compared with 2002.

Arizona’s seasonally adjusted unemployment rate for 2003 was 4.8 per cent, according to the Bureau of Labor Statistics and regional and state agencies. That compares with 6.1 per cent in 2002.

The national unemployment rate in those two years was 5.9 per cent, according to reporting agencies. —