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H 3432

An Act relative to assessing the costs of unemployment fraud

194th Legislature (2025-2026) Introduced by Marcus Vaughn

The bill authorizes a comprehensive state auditor audit of the Department of Unemployment Assistance to quantify COVID-era unemployment fraud, review prevention policies, and recom

Hearing scheduled for 07/22/2025 from 10:00 AM-01:00 PM in A-1
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Bill Summary · H 3432

Summary: H.3432 — An Act relative to assessing the costs of unemployment fraud

Overview

  • Purpose: Authorize and require a comprehensive audit by the Massachusetts State Auditor to assess unemployment fraud during the COVID-19 pandemic, review prevention policies, quantify costs to the state and taxpayers, and provide recommendations to improve fraud prevention.
  • Bill status: Hearing scheduled for July 22, 2025, from 10:00 AM to 1:00 PM in hearing room A-1.
  • Introduction and sponsorship: Introduced February 27, 2025 by Representative Marcus S. Vaughn (9th Norfolk). Referred to the Senate/House committee on State Administration and Regulatory Oversight.
  • Related material: Similar matter previously filed as House Bill 3123 in the 2023-2024 session; current bill references House Bill 319 in its docket.

Key Provisions

  • Audit authority: “Notwithstanding any general or special law to the contrary,” the State Auditor shall conduct a comprehensive audit of the Department of Unemployment Assistance to determine the level of unemployment fraud that occurred during the COVID-19 pandemic.
  • Audit scope includes: 1) Review and examination of the Department of Unemployment Assistance’s policies and procedures for preventing and addressing unemployment fraud. 2) Review of all costs to the state and taxpayers attributable to unemployment fraud during the pandemic. 3) Recommendations on how to improve the department’s policies to prevent unemployment fraud in the future.
  • Public reporting: The State Auditor must publish a report detailing findings and make it available to the public no later than December 31, 2026.

Scope and Affected Parties

  • Primary entity under review: Department of Unemployment Assistance (DUA).
  • Oversight and accountability: Commonwealth State Auditor (Office of the State Auditor) conducting the audit.
  • Broader impact: Taxpayers, beneficiaries of unemployment programs, and the general public who rely on transparent oversight of unemployment fraud costs and prevention measures.

Timeline and Procedural Details

  • Introduction: February 27, 2025.
  • Legislative action: Referred to the Committee on State Administration and Regulatory Oversight on February 27, 2025.
  • Hearing: Scheduled for July 22, 2025, 10:00 AM–1:00 PM, in hearing room A-1.
  • Reporting deadline: Auditor’s findings and public report due by December 31, 2026.
  • Status: Bill is in committee processing with a scheduled hearing; not yet enacted.

Potential Impact

  • Increased transparency about unemployment fraud during COVID-19 and its financial costs.
  • Independent assessment of DUA policies and possible reforms to reduce future fraud.
  • Data-driven basis for policy changes or legislative action to strengthen fraud prevention and detection.
  • Public access to audit findings could influence accountability measures and budgeting decisions related to unemployment programs.

Additional Notes

  • The bill explicitly contemplates a comprehensive audit rather than a narrow review.
  • It aligns with interest in learning from pandemic-era unemployment administration and ensuring preparedness for future crises.

Compiled from official sources — confirm details with the bill’s official record.

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