AZ HB2206

Requires the Arizona Department of Economic Security to reduce the SNAP (food stamps) payment error rate to no more than 3% by December 30, 2030

Mandates quarterly reports to the legislature beginning in fiscal year 2026-2027 detailing monthly progress on reducing the payment error rate, including strategies and barriers

Imposes penalties if the department misses annual interim targets or the final 3% goal, including submission of corrective action plans within 60 days, paying 50% of federal liabilities from department funds, and a 10% reduction in administrative funding for non-compliance

Requires the Auditor General to complete a special audit by November 15, 2027 to identify factors contributing to the payment error rate and recommend solutions, which the department must implement within 12 months

Contains a delayed repeal provision, with the law expiring on December 31, 2032