SB 1296 Arizona Senate · 57th Legislature - First Regular Session

unemployment benefits; requirements; disqualifications; determinations

SB 1296 amends Arizona's unemployment benefit laws to clarify when benefits can be denied for failing to accept suitable work or actively seek employment. It defines "suitable work" as positions paying at least the weekly benefit amount plus supplemental benefits and meeting state minimum wage standards. The bill also strengthens requirements for employers using Arizona's shared work program (reducing hours instead of laying off workers), mandating detailed plans about wage continuity, benefits, and layoffs avoided. These changes would directly affect unemployed workers seeking benefits and employers participating in shared work programs. The bill passed the legislature in April 2025 but was vetoed by the Governor on May 2, 2025.

Issues: ✓ Labor & Employment

Bill status vetoed 4 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

Senate Passage

Apr 2025

House Passage

Apr 2025

Vetoed

May 2025

Introduced Jan 30, 2025 Vetoed May 2, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

House Engrossed Version → Senate Engrossed Version · 5 edits · Apr 29, 2025

MODERATE

This bill updates Arizona's unemployment insurance statutes to clarify benefit denial rules, modify how wage calculations determine eligibility, and revise fraud detection requirements. The changes include formatting adjustments to statute numbering, clarifications on wage reuse rules, and modifications to how death records databases are referenced for identity verification.

Scope change

The bill's scope remains focused on unemployment insurance administration, with no changes to the overall applicability of the law.

TECHNICAL

Updated document version headers from House to Senate Engrossed version and adjusted statute section numbering.

Removed references to third-party commercially available databases for inmate and death records, keeping only official state and federal databases.

ELIGIBILITY

Clarified wage calculation rules for disability benefit years by repositioning the prohibition on reusing wages previously used to establish a benefit year.

Adjusted the list of conditions under which individuals may be denied unemployment benefits, renumbering items and removing a reference to a third-party database for employment verification.

ENFORCEMENT

Reordered fraud detection subsections and removed language about prioritizing cross-checking commercially available third-party databases.

Introduced Version → House Engrossed Version · 7 edits · Apr 29, 2025

MODERATE

This bill updates Arizona's unemployment insurance laws to modernize eligibility requirements, strengthen fraud prevention measures, and clarify rules around shared work programs and benefit disqualifications. Key changes include stricter work search requirements, expanded data cross-checking for fraud detection, and new provisions for handling domestic violence and vaccine-related terminations.

Scope change

The bill maintains the same scope of unemployment benefits but modifies specific eligibility criteria, disqualification rules, and administrative procedures to better align with current employment practices and fraud prevention needs.

REQUIREMENT

Work search requirements were strengthened to require at least five weekly work search actions including resume submissions, job applications, job fair attendance, interviews, and department-approved training programs.

Shared work plan requirements were updated to include expiration dates, collective bargaining agent approval, and clearer rules about fringe benefits during reduced workweeks.

Benefit disqualification periods were extended from four times to eight times the weekly benefit amount for individuals who fail to accept suitable work or actively seek work.

ENFORCEMENT

New provisions require the department to cross-check claims against multiple federal and state databases including new hire records, incarceration databases, death records, and employment verification services to detect fraud.

New rules require prompt written notice of reconsidered determinations and allow appeals within prescribed timeframes, with specific procedures for electronic appeals.

ELIGIBILITY

Added protection for individuals who leave employment due to domestic violence or are terminated for refusing COVID-19 vaccination requirements mandated by law.

DEFINITION

Suitable work definitions were adjusted to consider wage thresholds relative to benefit amounts and minimum wage requirements, with specific provisions for the first four weeks of unemployment.

Floor votes · House Apr 14, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 2, 2025

Vetoed

Vetoed by Governor

executive

Apr 29, 2025

Upper · Passed

PASSED

upper

Apr 14, 2025

Lower · Passed

PASSED

lower

Mar 26, 2025

Lower · Passed

DPA

lower

Mar 18, 2025

Lower · Passed

DPA

lower

Mar 3, 2025

Upper · Passed

PASSED

upper

Feb 26, 2025

Upper · Passed

upper

Feb 20, 2025

Upper · Passed

upper

1 primary · 1 co-sponsor