ARIZONA STATE SENATE

RESEARCH STAFF

 

TODD MADEKSZA

LEGISLATIVE  RESEARCH ANALYST

BANKING & INSURANCE COMMITTEE

Telephone: (602) 542-3171

Facsimile: (602) 542-7833

 

TO:                  MEMBERS OF THE SENATE

                        BANKING & INSURANCE COMMITTEE             

DATE:             January 23, 2001

 

SUBJECT:       Strike Everything Amendment (related to the same subject) to S.B. 1018

                        (unemployment insurance; waiting week)

                                                                                                                                                            

 

 

The strike everything amendment is a same subject amendment that moves the new language of S.B. 1018 to a more appropriate section of the statute and that allows employees engaging in unpaid training to be eligible for unemployment benefits.

 

Purpose

 

Eliminates the one-week waiting requirement for eligibility for unemployment benefits for individuals who are required to attend uncompensated training as a condition of remaining employed.

 

Background

 

Under current law, individuals seeking unemployment benefits are required to meet different criteria, including having been unemployed for a waiting period of one week.  In many situations, workers are required to receive uncompensated training as a condition to keep their employment. Many times, unions or other organizations are able to pay for the member’s or employee’s training but cannot afford to replace the weekly wages for that worker. Concern has been expressed that this situation creates economic hardships on these individuals and their families. S.B. 1018 removes the waiting week period for these individuals to enable them to receive a week of unemployment benefits for a week of uncompensated training, for a total of up to five weeks of unemployment benefits each benefit year.  The striker amendment makes technical changes in the location of the new language inside the applicable statute.  Also, language is included that clarifies that those receiving uncompensated training are not considered unavailable to work nor employed for the purpose of the statute. 

 

While the expansion of the eligibility for unemployment benefits may impact the unemployment trust fund and employer tax rates, the extent of this impact is unknown at this time.

 

Provisions

 

1.      Eliminates the required one week waiting period for the purpose of qualifying for up to five weeks of unemployment insurance benefits (one week of benefits for each week of training) if a person is required to attend uncompensated training as a condition for keeping a job. 

 

2.      Specifies that individual is considered unemployed and available for work by participating in uncompensated training, required to keep the person’s job.

 

3.      Provides for a general effective date.

           

TM/jas