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Committee advances bill tightening unemployment cross-checks and work-search rules after split testimony
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Summary
The Senate Commerce Committee voted to return SB 12 96 with a due-pass recommendation after hearing competing testimony about cross-checks, fraud reduction and increased work-search requirements for unemployment claimants.
The Senate Commerce Committee voted to return Senate Bill 12 96 with a due-pass recommendation after hearing competing testimony about the bill’s effects on program integrity and claimants.
SB 12 96 would require the Arizona Department of Economic Security (DES) to cross-check unemployment insurance claims against specified data sources and prohibit benefit payments where cross-checks indicate a claim is ineligible or potentially fraudulent. The bill also would modify eligibility rules — including requiring an individual to conduct at least five specified work-search actions per week and to provide a weekly report detailing search activity — and add employer reporting responsibilities for certain former-employee conduct.
Supporters argued the bill would reduce fraud and overpayments and restore accountability. Tim Pugliese of FGA Action said SB 12 96 would codify program-integrity recommendations from the U.S. Department of Labor and pointed to about $47 million identified as fraud and overpayments in Arizona over the past three years. He told the committee that similar practices have been implemented in other states without slowing payments.
Opponents said the bill would create burdensome reporting requirements that could harm people actively looking for work. Blake Lister of Opportunity Arizona testified in opposition, saying the bill "will create more barriers to receiving insurance by requiring more onerous red tape that takes time away from folks who are looking for work." Mark Ashley, a retired public servant and veteran, also said the bill places too much burden on claimants and DES staff.
Committee members noted DES had already received federal funding to modernize unemployment systems and that some cross-checks are in place. Witnesses and members clarified that the bill would not remove federal carve-outs for apprenticeship or state-approved workforce training programs.
Votes and procedural action: The committee adopted a 10-page amendment in the chairman’s name that narrowed or prioritized data sets for cross-checking, then returned SB 12 96 as amended with a due-pass recommendation. The roll-call reflected significant division: several members offered recorded explanations of their nay or yea votes. The committee reported the bill by a 6-4 tally.
Sponsors said the bill is intended to protect employer tax dollars and ensure benefits are available for those who qualify; opponents warned of unintended barriers for unemployed Arizonans. The chair and sponsors indicated further stakeholder conversations will continue as the bill moves forward.
