FUNKE FROMMEYER COMBATS
UNEMPLOYMENT INSURANCE FRAUD
SB 162 delivered to the Governor
FRANKFORT, KY (March 17, 2025) – Senate Bill 162, sponsored by Senator Shelley Funke Frommeyer, R-Alexandria, was delivered to the governor late Friday night. SB 162 will combat unemployment insurance (UI) fraud with the introduction of a mandated automatic referral of suspected fraud cases to law enforcement.
“This legislation requires the automatic referral of suspected UI fraud cases to law enforcement which closes a glaring loophole that has allowed fraudulent activity to go unchecked,” said Funke Frommeyer.
Kentucky’s UI system has recently been abused, draining taxpayer resources and eroding public trust. During the pandemic, 19 state employees—including some within the Office of Unemployment Insurance itself—illegally collected benefits while still on the state payroll. Yet only one was fired, and none faced prosecution.
SB 162 ensures immediate accountability by requiring the Kentucky Education and Labor Cabinet to refer all suspected fraud cases to the proper authorities, including the U.S. Department of Justice, the Kentucky Justice and Public Safety Cabinet, or local prosecutors.
Moreover, it mandates that law enforcement and prosecutors receive complete case information, enabling them to take swift legal action.
"This sort of fraud is despicable, especially since it occurred within the office on unemployment insurance, “ Funke Frommeyer said. “It’s only right that we have a zero tolerance for state employees who commit UI fraud—mandating immediate termination, criminal prosecution when necessary, and full repayment of stolen benefits.”
Kentuckians deserve a government that operates with honesty, integrity, and accountability. With SB 162, we are sending a clear and uncompromising message: If you steal from the public, you will face serious consequences.
The governor can sign the bill into law, allow it to become law without his signature or veto the bill. If he vetoes SB 162, the General Assembly has a super majority and can quickly override any veto the Governor issues.
SB 162 has an emergency clause and will go into effect immediately.
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Sen. Shelley Funke Frommeyer, R-Alexandria, represents the 24th Senate District, including Bracken, Campbell, and Pendleton Counties and part of Kenton County. Frommeyer serves as vice chair of the Senate Economic Development, Tourism, and Labor Committee and co-chair of the Budget Review Subcommittee on Justice and Judiciary. She is also a member of the Legislative Research Commission 2024-26 Budget Preparation and Submission, and Senate Committees on Appropriations and Revenue, Agriculture; and Families and Children. Additionally, Frommeyer is co-chair of Capital Projects and Bond Oversight, and Public Pension Oversight Board and Workforce Attraction and Retention Task Force member.
Visit https://legislature.ky.gov/Legislators%20Full%20Res%20Images/senate124.jpg for a high-resolution .jpeg of Funke Frommeyer.
