KRS 341.414: Steps office shall take for all claims made after July 1, 2023, to

ensure integrity of program, to verify eligibility, to prevent fraud and

overpayment of claims -- Records -- Annual report to Legislative

Research Commission.

(1) To ensure the integrity of the unemployment insurance program, to verify

eligibility, to prevent fraudulent filing, and to prevent overpayment of claims, for

all claims made after July 1, 2023, the office shall:

(a) Use state or commercially available databases to check new hire records

against the state's unemployment insurance rolls on a weekly basis;

(b) Check state data, federal data, or a commercially available database on a

weekly basis;

(c) Check new hire records against the National Directory of New Hires on a

weekly basis;

(d) Check the unemployment insurance rolls against the Kentucky

Department of Corrections list of incarcerated individuals on a weekly

basis;

(e) Enter into a cooperative agreement with the United States Department of

Labor's Office of Inspector General to proactively detect and investigate

cases of unemployment fraud;

(f) Review the individual's case and make a final determination of his or her

eligibility when the office receives information that an individual who is

participating in the unemployment compensation insurance program has

had a change in circumstances that may affect his or her eligibility;

(g) Provide employers with electronic notice of new unemployment claims,

access to information about pending unemployment insurance claims,

and status of appealed claims via the Kentucky One Stop Business

Portal;

(h) Promulgate, adopt, and implement internal administrative regulations and

policies to recover improper overpayments of unemployment benefits;

(i) Require at least two-factor authentication from every benefit applicant

prior to payment of any benefit; and

(j) Maintain records of any and all applications for waiver of overpayment.

(2) The office shall provide the Office of the Attorney General with all records it

requests for the purposes of investigating and prosecuting fraudulent

unemployment insurance activity.

(3) The office shall complete an annual report for the Legislative Research

Commission which details efforts to recover improper benefit payments, causes

of improper unemployment benefit payments, measures implemented to avoid

improper benefit payments, summarizes all cases where repayment was not

attempted due to a statutory exception, and analyzes any cost savings to the

Commonwealth. The office shall provide this report to the Legislative Research

Commission annually, no later than October 1 of each year.