AN ACT relating to unemployment insurance.

Create a new section of KRS Chapter 341 to require the Education and Labor Cabinet to refer suspected unemployment insurance fraud cases to the United States Department of Justice, the Kentucky Justice and Public Safety Cabinet, and the county attorney or Commonwealth's attorney within 30 days of the suspected fraud determination; require that public agencies immediately terminate employees or contractors determined to have collected or attempted to collect unemployment benefits while employed by the public agency; do not require a legal disposition finding that the employee or contractor is guilty in order for public agencies to terminate employment; provide that collecting or attempting to collect unemployment benefits while employed by or under contract with the cabinet shall be a breach of any collective bargaining agreement, civil service process, or contract; amend KRS 341.370 to require that a worker be disqualified from receiving benefits for any week they are under investigation for suspected unemployment insurance fraud; require the disqualification to remain in effect until an investigation determines that a fraudulent act has not occurred; amend KRS 341.360 to conform.