SNAP; error rate; forensic audit

HB2206 - 572R - H Ver

House Engrossed

SNAP; error rate;
forensic audit

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2206

AN
ACT

amending title 46, CHAPTER 2, article 2, arizona
revised statutes, by adding section 46-232; repealing section 46-232,
arizona revised statutes; relating to the supplemental nutrition assistance
program.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1. Title 46, chapter 2, article 2,
Arizona Revised Statutes, is amended by adding section 46-232, to read:

START_STATUTE
46-232.

Payment error
rate; reduction; quarterly reports; requirements; auditor general

A. On or before December 30, 2030,
the department shall reduce the supplemental nutrition assistance program's
payment error rate as reported by the United States department of agriculture
to not more than three percent.

B. Beginning in fiscal year
2026-2027 and each fiscal year thereafter, the department shall
submit
a quarterly report to the legislature
within thirty days after the end of the quarter that details the
department's
monthly progress towards reducing the
payment error rate and that includes strategies and barriers that may be
present in reducing the payment error rate.

C. If the department fails to meet
annual interim targets established by rule or the final target as prescribed in
subsection A of this section, the department shall:

1. Submit a corrective action plan to
the legislature within sixty days that includes an analysis of why the targets
were not met and timelines for correcting the payment error rate.

2. Pay fifty percent of any federal
liabilities that may be imposed due to the excess payment error
rates. The remaining federal liabilities shall be paid from the
state general fund.

3. Implement a corrective
plan. If the department fails to comply with the corrective plan,
the department's administrative funding shall be reduced by ten percent until
resolved.

D. On or before
November 15, 2027, The auditor general shall complete a
special audit. the
special audit
shall determine what factors contributed to the payment error rate and shall
include recommendations to reduce the payment error rate. The
department shall implement the recommendations within twelve months after
receiving the recommendations from the auditor general unless the
recommendations are waived by the joint legislative audit committee.�
The auditor general may request that the department submit a written
status report on the department's implementation of the special audit
recommendations.

E. If the department corrects the
payment error rate ahead of schedule, the legislature may allocate additional
funding for program improvements.

END_STATUTE

Sec. 2.
Delayed repeal

Section 46-232, Arizona Revised
Statutes, as added by this act, is repealed from and after December 31, 2032.

Sec. 3.
Short title

This act may be cited as the "Oh
SNAP Act".