AN ACT relating to unemployment insurance and declaring an emergency.

Amend KRS 341.416, relating to suspected unemployment insurance fraud, to require the Education and Labor Cabinet to refer suspected fraud cases to the United States Department of Labor and to remove the Kentucky Justice and Public Safety Cabinet and the United States Department of Justice from the required referral.

Insurance Labor and Industry State Agencies Unemployment Compensation Workforce

Introduced: January 29, 2026

Last action: April 13, 2026

(Acts Ch. 123)

In effect since April 13, 2026

This act carries an emergency clause, so it took effect as soon as it became law instead of waiting the usual 90 days after the session adjourned (Ky. Constitution § 55).

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This bill changes which government agencies must be notified when unemployment insurance fraud is suspected. It removes the requirement to notify the Kentucky Justice and Public Safety Cabinet and the U.S. Department of Justice, and instead requires the Education and Labor Cabinet to refer suspected fraud cases to the U.S. Department of Labor. Who it may affect: people who file for unemployment benefits and state agency staff who handle unemployment insurance cases.

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