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House Engrossed
unemployment insurance; fraud prevention |
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State of Arizona House of Representatives Fifty-fifth Legislature First Regular Session 2021
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HOUSE BILL 2397 |
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AN ACT
amending Title 23, chapter 4, article 7, Arizona Revised Statutes, by adding section 23-800; relating to employment security.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 23, chapter 4, article 7, Arizona Revised Statutes, is amended by adding section 23-800, to read:
23-800. Fraud prevention; annual report; rules; definitions
A. To enhance the integrity of this state's unemployment insurance program, the department shall do all of the following:
1. On a weekly basis, use a database that provides cross-matching functions for the prevention and detection of fraud to verify the integrity of this state's unemployment insurance rolls.
2. On a weekly basis, check the unemployment insurance rolls against the state department of corrections list of incarcerated individuals to verify eligibility and ensure program integrity.
3. On a weekly basis, check new hire records against the national directory of new hires to verify eligibility.
B. The department may execute a memorandum of understanding with any department, agency or division for information required to be shared between agencies as required by this section.
C. If the department receives information concerning an individual enrolled in the unemployment insurance program that indicates a change in circumstances that may affect eligibility, the department shall review the individual's case.
D. In accordance with section 23-787, the department shall both:
1. Adopt and implement internal administrative policies to recover improper overpayments of benefits to the fullest extent possible by state and federal law.
2. Recover improper benefit overpayments unless doing so would violate existing state or federal law.
E. On an annual basis, the department shall provide a written report to the governor, the president of the senate and the speaker of the house of representatives that addresses the implementation and enforcement of this section. The department shall provide a copy of this report to the secretary of state. This report shall include all of the following information:
1. The type and amount of improper payments detected retroactively.
2. The type and amount of improper payments prevented.
3. Monies saved in preventing improper overpayments and, if any, in recouping improper overpayments.
4. An explanation for the nonrecovery of overpayments, including the application of any allowable recovery exceptions.
F. The department shall adopt any rules necessary for the purposes of carrying out this section.
G. For the purposes of this section:
1. "New hire records" means the directory of newly hired and rehired employees reported under state and federal law and managed by the department.
2. "Unemployment insurance rolls" means jobless workers receiving unemployment insurance in this state.
Sec. 2. Effective date
This act is effective from and after December 31, 2021.
Sec. 3. Short title
This act may be cited as the "Unemployment Insurance Program Integrity Act of 2021".