REFERENCE TITLE: unemployment insurance; performance audit

 

 

 

 

State of Arizona

House of Representatives

Fifty-fifth Legislature

First Regular Session

2021

 

 

HB 2660

 

Introduced by

Representatives Epstein: Bolding, Cano, Friese, Jermaine, Longdon, Stahl Hamilton, Terán, Senator Engel

 

 

AN ACT

 

amending title 23, chapter 4, article 7, Arizona Revised Statutes, by adding section 23-799.01; 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 23-799.01, to read:

START_STATUTE23-799.01.  Performance audit

Beginning in 2025 and every fifth succeeding year thereafter, the auditor general shall conduct a performance audit as defined in section 41‑1278 of the department of economic security with respect to the unemployment insurance program under this chapter.  The auditor general shall submit copies of the performance audit to the governor, the president of the senate, the speaker of the house of representatives and the secretary of state. END_STATUTE

Sec. 2.  Auditor general; special audit; unemployment insurance program; report; delayed repeal

A.  Pursuant to section 41-1279.03, Arizona Revised Statutes, the auditor general shall perform a special audit to examine the current department of economic security unemployment insurance program and consider best practices to improve the delivery of services in this state, including all of the following:

1.  Developing a strategic direction that establishes protocols for the timely and appropriate response to unemployment insurance applications.  These protocols must include online services and telephone services.  The special audit must also address the feasibility of mobile services.

2.  Creating accountability mechanisms, including the capacity to produce accurate data on performance and outcome measures, use of the data for performance management, processes for continuous quality review and mechanisms for qualitative review of system functioning and outcomes for unemployment insurance applicants.

3.  Establishing strategies for timely response to unemployment insurance applicants.

4.  Reviewing the unemployment compensation fund established by section 23-701, Arizona Revised Statutes.  The review must include an analysis of both of the following:

(a)  The unemployment compensation fund revenue collections and payouts.

(b)  Whether the current statutory tax framework is sufficient to ensure that the unemployment compensation fund stays solvent during times of prolonged economic distress.

5.  Reviewing system processing and whether the current system is adequate to fit state unemployment insurance needs, especially during a public health emergency.

6.  Recommending areas to be considered in future performance audits conducted pursuant to section 23-799.01, Arizona Revised Statutes, as added by this act.

B.  On or before July 1, 2022, the auditor general shall submit a report of its work, including findings and recommendations, to the governor, the president of the senate and the speaker of the house of representatives and shall provide a copy of its report to the secretary of state.

C.  This section is repealed from and after December 31, 2022.