AZ HB2559

Establishes a computerized income, asset, and identity eligibility verification system within the Department of Economic Security to detect fraud, waste, and abuse in public assistance programs.

Requires the department to contract with a third-party vendor to verify applicant income, assets, and identity before distributing benefits and periodically during eligibility reviews, with savings from the system required to exceed its yearly cost.

Mandates quarterly verification of applicant and recipient identity information against 23 data sources including IRS records, Social Security Administration databases, immigration status information, employment records, housing assistance data, and financial institution records.

Requires applicants to complete a computerized identity authentication process using knowledge-based questions before receiving benefits, with availability through online, in-person, and telephone channels.

Establishes procedures for handling identity discrepancies, including notification to applicants, 10-business-day response periods, referral of suspected fraud cases to the Attorney General, and annual reporting to legislative leadership and the governor on system effectiveness and outcomes.