REFERENCE TITLE: unemployment insurance; fraud prevention




State of Arizona

House of Representatives

Fifty-fifth Legislature

First Regular Session




HB 2397


Introduced by

Representative Cobb





amending Title 23, chapter 4, article 7, Arizona Revised Statutes, by adding section 23-800; relating to employment security.





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:

START_STATUTE23-800.  Fraud prevention; rules; definitions

A.  To enhance the integrity of this state's unemployment insurance program, the department shall do all of the following:

1.  Engage with and use an integrity data hub to verify the integrity of this state's unemployment insurance rolls.  The integrity data hub shall meet both of the following criteria:

(a)  Be designed by the leading unemployment insurance experts at an unemployment insurance integrity center that provides information on the prevention, detection and recovery of improper payments, fraud and delinquent employer contributions.

(b)  Provide critical cross-matching functionality to combat the challenges and urgencies of unemployment insurance fraud.

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.  The department shall adopt any rules necessary for the purposes of carrying out this section.

E.  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. END_STATUTE

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".