House of Representatives

HB 2151

Unemployment insurance; job training

Sponsors: Representative May

DPA	Committee on Commerce and Economic Development
X	Caucus and COW	This bill as introduced contains an Emergency clause.
	As Passed the House

HB 2151 is an emergency measure making technical and clarifying changes to the Arizona Job Training Program Fund. In addition, the bill adds a section to statute that conforms to recent changes in federal legislation.

History

There have been recent changes in the federal unemployment law relating to Native American tribes. HB 2151 adds pertinent language to conform Arizona statute to federal law.

Laws 2000, Chapter 383, stipulated that beginning January 1, 2001, the Arizona Job Training Program would be funded through an employer tax, rather than general fund monies. There was not a financial impact to employers. The new law established an employer tax equal to one-tenth per cent of taxable wages paid annually to each employee. In turn, the law reduced the currently charged unemployment tax by one-tenth per cent until the federal unemployment tax rate reduces to six per cent or less, or until the repeal of the program. HB 2151 adds language to statute so that all employers will not experience a tax increase.

Provisions

· Permits Indian tribes to pay unemployment contributions in lieu of payments.

· Establishes a one year restriction for tribes that fail to make payments in a timely manner.

· Defines employment by an Indian tribe and tribal unit.

· Allows employers with statutorily fixed unemployment tax rates to be included in the exemption from the one-tenth of one- percent tax on employee taxable wages. Those types of employers are:

· Employers who chose to make payments rather than contributions.

· Employers with a positive reserve ratio of at least twelve percent.

· Employers assigned a two and seven tenths per cent contribution rate.

· Employers with a negative reserve ratio.

· Contains an emergency clause.

HB 2151 was amended in the Commerce and Economic Development Committee:

· Clarifies the exemption from the job training tax terminates when the Federal Unemployment Tax is reduced to six percent or less.

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· 44th Legislature

· Second Regular Session 2 January 24, 2001

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