Bill Text: MI HB4982 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Employment security; administration; unemployment insurance benefit claims; require additional notice and examination for fraud determination. Amends secs. 32a, 54 & 62 of 1936 (Ex Sess) PA 1 (MCL 421.32a et seq.).
Spectrum: Bipartisan Bill
Status: (Passed) 2016-12-31 - Assigned Pa 522'16 [HB4982 Detail]
Download: Michigan-2015-HB4982-Engrossed.html
HB-4982, As Passed House, December 8, 2016
SUBSTITUTE FOR
HOUSE BILL NO. 4982
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending sections 27, 32, 54, and 62 (MCL 421.27, 421.32,
421.54, and 421.62), section 27 as amended by 2012 PA 496, section
32 as amended by 2013 PA 144, section 54 as amended by 2013 PA 143,
and section 62 as amended by 2013 PA 147.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 27. (a)(1) When a determination, redetermination, or
decision is made that benefits are due an unemployed individual,
the
benefits shall become payable from the fund and continue to be
payable to the unemployed individual, subject to the limitations
imposed by the individual's monetary entitlement, if the individual
continues to be unemployed and to file claims for benefits, until
the determination, redetermination, or decision is reversed, a
determination, redetermination, or decision on a new issue holding
the individual disqualified or ineligible is made, or, for benefit
years beginning before October 1, 2000, a new separation issue
arises resulting from subsequent work.
(2)
Benefits shall be paid are
payable in person or by mail
through
Employment employment security
offices in accordance with
rules
promulgated by the commission.unemployment
agency.
(b)(1) Subject to subsection (f), the weekly benefit rate for
an individual, with respect to benefit years beginning before
October
1, 2000, shall be is 67% of the individual's average after
tax weekly wage, except that the individual's maximum weekly
benefit
rate shall must not exceed $300.00. However, with respect
to benefit years beginning on or after October 1, 2000, the
individual's weekly benefit rate is 4.1% of the individual's wages
paid in the calendar quarter of the base period in which the
individual was paid the highest total wages, plus $6.00 for each
dependent as defined in subdivision (4), up to a maximum of 5
dependents, claimed by the individual at the time the individual
files a new claim for benefits, except that the individual's
maximum
weekly benefit rate shall must
not exceed $300.00 before
April 26, 2002 and $362.00 for claims filed on and after April 26,
2002. The weekly benefit rate for an individual claiming benefits
on
and after April 26, 2002 shall must
be recalculated subject to
the $362.00 maximum weekly benefit rate. The unemployment agency
shall establish the procedures necessary to verify the number of
dependents claimed. If a person fraudulently claims a dependent,
that person is subject to the penalties set forth in sections 54
and 54c. For benefit years beginning on or after October 2, 1983,
the
weekly benefit rate shall must
be adjusted to the next lower
multiple of $1.00.
(2) For benefit years beginning before October 1, 2000, the
state
average weekly wage for a calendar year shall be is computed
on the basis of the 12 months ending the June 30 immediately before
that
calendar year. The commission shall prepare a table of weekly
benefit
rates based on an "average after tax weekly wage"
calculated
by subtracting, from an individual's average weekly wage
as
determined in accordance with section 51, a reasonable
approximation
of the weekly amount required to be withheld by the
employer
from the remuneration of the individual based on
dependents
and exemptions for income taxes under 26 USC 3401 to
3406,
and under section 351 of the income tax act of 1967, 1967 PA
281,
MCL 206.351, and for old age and survivor's disability
insurance
taxes under the federal insurance contributions act, 26
USC
3101 to 3128. For purposes of applying the table to an
individual's
claim, a dependent shall be as defined in subdivision
(3).
The table applicable to an individual's claim shall be the
table
reflecting the number of dependents claimed by the individual
under
subdivision (3). The commission shall adjust the tables based
on
changes in withholding schedules published by the United States
department
of treasury, internal revenue service, and by the
department
of treasury. The number of dependents allowed shall be
determined
with respect to each week of unemployment for which an
individual
is claiming benefits.
(3) For benefit years beginning before October 1, 2000, a
dependent means any of the following persons who are receiving and
for at least 90 consecutive days immediately before the week for
which benefits are claimed, or, in the case of a dependent husband,
wife, or child, for the duration of the marital or parental
relationship, if the relationship has existed less than 90 days,
has received more than 1/2 the cost of his or her support from the
individual claiming benefits:
(a) A child, including stepchild, adopted child, or grandchild
of the individual who is under 18 years of age, or 18 years of age
or over if, because of physical or mental infirmity, the child is
unable to engage in a gainful occupation, or is a full-time student
as defined by the particular educational institution, at a high
school, vocational school, community or junior college, or college
or university and has not attained the age of 22.
(b) The husband or wife of the individual.
(c) The legal father or mother of the individual if that
parent is either more than 65 years of age or is permanently
disabled from engaging in a gainful occupation.
(d) A brother or sister of the individual if the brother or
sister is orphaned or the living parents are dependent parents of
an individual, and the brother or sister is under 18 years of age,
or 18 years of age or over if, because of physical or mental
infirmity, the brother or sister is unable to engage in a gainful
occupation, or is a full-time student as defined by the particular
educational institution, at a high school, vocational school,
community or junior college, or college or university and is less
than 22 years of age.
(4) For benefit years beginning on or after October 1, 2000, a
dependent means any of the following persons who received for at
least 90 consecutive days immediately before the first week of the
benefit year or, in the case of a dependent husband, wife, or
child, for the duration of the marital or parental relationship if
the relationship existed less than 90 days before the beginning of
the benefit year, has received more than 1/2 the cost of his or her
support from the individual claiming the benefits:
(a) A child, including stepchild, adopted child, or grandchild
of the individual who is under 18 years of age, or 18 years of age
and over if, because of physical or mental infirmity, the child is
unable to engage in a gainful occupation, or is a full-time student
as defined by the particular educational institution, at a high
school, vocational school, community or junior college, or college
or university and has not attained the age of 22.
(b) The husband or wife of the individual.
(c) The legal father or mother of the individual if that
parent is either more than 65 years of age or is permanently
disabled from engaging in a gainful occupation.
(d) A brother or sister of the individual if the brother or
sister is orphaned or the living parents are dependent parents of
an individual, and the brother or sister is under 18 years of age,
or 18 years of age and over if, because of physical or mental
infirmity, the brother or sister is unable to engage in a gainful
occupation, or is a full-time student as defined by the particular
educational institution, at a high school, vocational school,
community or junior college, or college or university and is less
than 22 years of age.
(5)
For benefit years beginning before October 1, 2000,
dependency
status of a dependent, child or otherwise, once
established
or fixed in favor of an individual continues during the
individual's
benefit year until terminated. Dependency status of a
dependent
terminates at the end of the week in which the dependent
ceases
to be an individual described in subdivision (3)(a), (b),
(c),
or (d) because of age, death, or divorce. For benefit years
beginning
on or after October 1, 2000, the The
number of dependents
established for an individual at the beginning of the benefit year
shall remain in effect during the entire benefit year.
(6)
For benefit years beginning before October 1, 2000,
failure
on the part of an individual, due to misinformation or lack
of
information, to furnish all information material for
determination
of the number of the individual's dependents when the
individual
files a claim for benefits with respect to a week is
good
cause to issue a redetermination as to the amount of benefits
based
on the number of the individual's dependents as of the
beginning
date of that week. Dependency
status of a dependent,
child or otherwise, once established or fixed in favor of a person
is not transferable to or usable by another person with respect to
the same week.
For
benefit years beginning on or after October 1, 2000,
failure
Failure on the part of an individual, due to misinformation
or lack of information, to furnish all information material for
determination of the number of the individual's dependents is good
cause to issue a redetermination as to the amount of benefits based
on the number of the individual's dependents as of the beginning of
the benefit year.
(c) Subject to subsection (f), all of the following apply to
eligible individuals:
(1)
Each eligible individual shall must
be paid a weekly
benefit rate with respect to the week for which the individual
earns or receives no remuneration. Notwithstanding the definition
of week in section 50, if within 2 consecutive weeks in which an
individual was not unemployed within the meaning of section 48
there was a period of 7 or more consecutive days for which the
individual
did not earn or receive remuneration, that period shall
be
is considered a week for benefit purposes under this
act if a
claim for benefits for that period is filed not later than 30 days
after the end of the period.
(2)
Each eligible individual shall have his or her The weekly
benefit rate is reduced with respect to each week in which the
eligible individual earns or receives remuneration at the rate of
40 cents for each whole $1.00 of remuneration earned or received
during that week. Beginning October 1, 2015, an eligible
individual's
weekly benefit rate shall be is
reduced at the rate of
50 cents for each whole $1.00 of remuneration in which the eligible
individual earns or receives remuneration in that benefit week. The
weekly
benefit rate shall not be is
not reduced under this
subdivision for remuneration received for on-call or training
services as a volunteer firefighter, if the volunteer firefighter
receives less than $10,000.00 in a calendar year for services as a
volunteer firefighter.
(3) An individual who receives or earns partial remuneration
may not receive a total of benefits and earnings that exceeds 1-3/5
times his or her weekly benefit amount. For each dollar of total
benefits and earnings that exceeds 1-3/5 times the individual's
weekly
benefit amount, benefits shall be is reduced by $1.00.
Beginning October 1, 2015, the total benefits and earnings for an
individual
who receives or earns partial remuneration shall may not
exceed 1-1/2 times his or her weekly benefit amount. The
individual's
benefits shall be are reduced by $1.00 for each dollar
by which the total benefits and earnings exceed 1-1/2 times the
individual's weekly benefit amount.
(4) If the reduction in a claimant's benefit rate for a week
in accordance with subdivision (2) or (3) results in a benefit rate
greater than zero for that week, the claimant's balance of weeks of
benefit
payments shall be is reduced by 1 week.
(5) All remuneration for work performed during a shift that
terminates
on 1 day but that began on the preceding day shall be is
considered to have been earned by the eligible individual on the
preceding day.
(6) The unemployment agency shall report annually to the
legislature the following information with regard to subdivisions
(2) and (3):
(a) The number of individuals whose weekly benefit rate was
reduced at the rate of 40 or 50 cents for each whole $1.00 of
remuneration earned or received over the immediately preceding
calendar year.
(b) The number of individuals who received or earned partial
remuneration at or exceeding the applicable limit of 1-1/2 or 1-3/5
times their weekly benefit amount prescribed in subdivision (3) for
any 1 or more weeks during the immediately preceding calendar year.
(7) The unemployment agency shall not use prorated quarterly
wages to establish a reduction in benefits under this subsection.
(d)
For benefit years beginning before October 1, 2000, and
subject
to subsection (f) and this subsection, the amount of
benefits
to which an individual who is otherwise eligible is
entitled
during a benefit year from an employer with respect to
employment
during the base period is the amount obtained by
multiplying
the weekly benefit rate with respect to that employment
by
3/4 of the number of credit weeks earned in the employment. For
the
purpose of this subsection and section 20(c), if the resultant
product
is not an even multiple of 1/2 the weekly benefit rate, the
product
shall be raised to an amount equal to the next higher
multiple
of 1/2 the weekly benefit rate, and, for an individual who
was
employed by only 1 employer in the individual's base period and
earned
34 credit weeks with that employer, the product shall be
raised
to the next higher multiple of the weekly benefit rate. The
maximum
amount of benefits payable to an individual within a
benefit
year, with respect to employment by an employer, shall not
exceed
26 times the weekly benefit rate with respect to that
employment.
The maximum amount of benefits payable to an individual
within
a benefit year shall not exceed the amount to which the
individual
would be entitled for 26 weeks of unemployment in which
remuneration
was not earned or received. The limitation of total
benefits
set forth in this subsection does not apply to claimants
declared
eligible for training benefits in accordance with
subsection
(g). For benefit years beginning on or after October 1,
2000,
and subject Subject to subsection (f) and this subsection,
the maximum benefit amount payable to an individual in a benefit
year for purposes of this section and section 20(d) is the number
of weeks of benefits payable to an individual during the benefit
year, multiplied by the individual's weekly benefit rate. The
number of weeks of benefits payable to an individual shall be
calculated by taking 43% of the individual's base period wages and
dividing the result by the individual's weekly benefit rate. If the
quotient
is not a whole or half number, the result shall be is
rounded down to the nearest half number. However, for each eligible
individual filing an initial claim before January 15, 2012, not
more than 26 weeks of benefits or less than 14 weeks of benefits
shall
be are payable to an individual in a benefit year. For each
eligible individual filing an initial claim on or after January 15,
2012, not more than 20 weeks of benefits or less than 14 weeks of
benefits
shall be are payable to an individual in a benefit year.
The limitation of total benefits set forth in this subsection does
not apply to claimants declared eligible for training benefits in
accordance with subsection (g).
(e) When a claimant dies or is judicially declared insane or
mentally incompetent, unemployment compensation benefits accrued
and payable to that person for weeks of unemployment before death,
insanity,
or incompetency, but not paid, shall become due and
payable to the person who is the legal heir or guardian of the
claimant or to any other person found by the commission to be
equitably entitled to the benefits by reason of having incurred
expense in behalf of the claimant for the claimant's burial or
other necessary expenses.
(f)(1) For benefit years beginning before October 1, 2000, and
notwithstanding any inconsistent provisions of this act, the weekly
benefit rate of each individual who is receiving or will receive a
"retirement
benefit", as defined in subdivision (4), shall be is
adjusted as provided in subparagraphs (a), (b), and (c). However,
an individual's extended benefit account and an individual's weekly
extended
benefit rate under section 64 shall be is established
without reduction under this subsection unless subdivision (5) is
in effect. Except as otherwise provided in this subsection, all
other provisions of this act continue to apply in connection with
the benefit claims of those retired persons.
(a) If and to the extent that unemployment benefits payable
under this act would be chargeable to an employer who has
contributed to the financing of a retirement plan under which the
claimant is receiving or will receive a retirement benefit yielding
a pro rata weekly amount equal to or larger than the claimant's
weekly benefit rate as otherwise established under this act, the
claimant
shall must not receive unemployment benefits that would be
chargeable to the employer under this act.
(b) If and to the extent that unemployment benefits payable
under this act would be chargeable to an employer who has
contributed to the financing of a retirement plan under which the
claimant is receiving or will receive a retirement benefit yielding
a pro rata weekly amount less than the claimant's weekly benefit
rate as otherwise established under this act, then the weekly
benefit rate otherwise payable to the claimant and chargeable to
the
employer under this act shall be are reduced by an amount
equal
to the pro rata weekly amount, adjusted to the next lower multiple
of $1.00, which the claimant is receiving or will receive as a
retirement benefit.
(c) If the unemployment benefit payable under this act would
be chargeable to an employer who has not contributed to the
financing of a retirement plan under which the claimant is
receiving or will receive a retirement benefit, then the weekly
benefit rate of the claimant as otherwise established under this
act
shall is not be reduced due to receipt of a retirement
benefit.
(d) If the unemployment benefit payable under this act is
computed on the basis of multiemployer credit weeks and a portion
of the benefit is allocable under section 20(e) to an employer who
has contributed to the financing of a retirement plan under which
the claimant is receiving or will receive a retirement benefit, the
adjustments required by subparagraph (a) or (b) apply only to that
portion of the weekly benefit rate that would otherwise be
allocable and chargeable to the employer.
(2) If an individual's weekly benefit rate under this act was
established before the period for which the individual first
receives a retirement benefit, any benefits received after a
retirement
benefit becomes payable shall must
be determined in
accordance with the formula stated in this subsection.
(3) When necessary to assure prompt payment of benefits, the
commission shall determine the pro rata weekly amount yielded by an
individual's retirement benefit based on the best information
currently available to it. In the absence of fraud, a determination
shall
must not be reconsidered unless it is established that
the
individual's actual retirement benefit in fact differs from the
amount determined by $2.00 or more per week. The reconsideration
shall
apply applies only to benefits as that may
be claimed after
the information on which the reconsideration is based was received
by the commission.
(4)(a) As used in this subsection, "retirement benefit" means
a benefit, annuity, or pension of any type or that part thereof
that is described in subparagraph (b) that is both:
(i) Provided as an incident of employment under an established
retirement plan, policy, or agreement, including federal social
security if subdivision (5) is in effect.
(ii) Payable to an individual because the individual has
qualified on the basis of attained age, length of service, or
disability, whether or not the individual retired or was retired
from employment. Amounts paid to individuals in the course of
liquidation of a private pension or retirement fund because of
termination of the business or of a plant or department of the
business of the employer involved are not retirement benefits.
(b) If a benefit as described in subparagraph (a) is payable
or paid to the individual under a plan to which the individual has
contributed:
(i) Less than 1/2 of the cost of the benefit, then only 1/2 of
the benefit is treated as a retirement benefit.
(ii) One-half or more of the cost of the benefit, then none of
the benefit is treated as a retirement benefit.
(c) The burden of establishing the extent of an individual's
contribution to the cost of his or her retirement benefit for the
purpose of subparagraph (b) is upon the employer who has
contributed to the plan under which a benefit is provided.
(5) Notwithstanding any other provision of this subsection,
for any week that begins after March 31, 1980, and with respect to
which an individual is receiving a governmental or other pension
and claiming unemployment compensation, the weekly benefit amount
payable
to the individual for those weeks shall be is reduced,
but
not below zero, by the entire prorated weekly amount of any
governmental or other pension, retirement or retired pay, annuity,
or any other similar payment that is based on any previous work of
the
individual. This reduction shall be is made only if it is
required as a condition for full tax credit against the tax imposed
by the federal unemployment tax act, 26 USC 3301 to 3311.
(6) For benefit years beginning on or after October 1, 2000,
notwithstanding any inconsistent provisions of this act, the weekly
benefit rate of each individual who is receiving or will receive a
retirement
benefit, as defined in subdivision (4), shall be is
adjusted as provided in subparagraphs (a), (b), and (c). However,
an individual's extended benefit account and an individual's weekly
extended
benefit rate under section 64 shall be is established
without reduction under this subsection, unless subdivision (5) is
in effect. Except as otherwise provided in this subsection, all the
other provisions of this act apply to the benefit claims of those
retired persons. However, if the reduction would impair the full
tax credit against the tax imposed by the federal unemployment tax
act,
26 USC 3301 to 3311, unemployment benefits shall not be are
not reduced as provided in subparagraphs (a), (b), and (c) for
receipt of any governmental or other pension, retirement or retired
pay, annuity, or other similar payment that was not includable in
the gross income of the individual for the taxable year in which it
was received because it was a part of a rollover distribution.
(a) If any base period or chargeable employer has contributed
to the financing of a retirement plan under which the claimant is
receiving or will receive a retirement benefit yielding a pro rata
weekly amount equal to or larger than the claimant's weekly benefit
rate
as otherwise established under this act, the claimant shall
not
is not eligible to receive unemployment benefits.
(b) If any base period employer or chargeable employer has
contributed to the financing of a retirement plan under which the
claimant is receiving or will receive a retirement benefit yielding
a pro rata weekly amount less than the claimant's weekly benefit
rate as otherwise established under this act, then the weekly
benefit
rate otherwise payable to the claimant shall be is reduced
by an amount equal to the pro rata weekly amount, adjusted to the
next lower multiple of $1.00, which the claimant is receiving or
will receive as a retirement benefit.
(c) If no base period or separating employer has contributed
to the financing of a retirement plan under which the claimant is
receiving or will receive a retirement benefit, then the weekly
benefit rate of the claimant as otherwise established under this
act shall not be reduced due to receipt of a retirement benefit.
(g) Notwithstanding any other provision of this act, an
individual pursuing vocational training or retraining pursuant to
section 28(2) who has exhausted all benefits available under
subsection (d) may be paid for each week of approved vocational
training pursued beyond the date of exhaustion a benefit amount in
accordance with subsection (c), but not in excess of the
individual's most recent weekly benefit rate. However, an
individual
shall must not be paid training benefits totaling more
than 18 times the individual's most recent weekly benefit rate. The
expiration
or termination of a benefit year shall does not stop or
interrupt payment of training benefits if the training for which
the benefits were granted began before expiration or termination of
the benefit year.
(h)
A payment of accrued unemployment benefits shall not be
made
is not payable to an eligible individual or in behalf of that
individual as provided in subsection (e) more than 6 years after
the ending date of the benefit year covering the payment or 2
calendar years after the calendar year in which there is final
disposition of a contested case, whichever is later.
(i) Benefits based on service in employment described in
section 42(8), (9), and (10) are payable in the same amount, on the
same terms, and subject to the same conditions as compensation
payable on the basis of other service subject to this act, except
that:
(1) With respect to service performed in an instructional,
research, or principal administrative capacity for an institution
of higher education as defined in section 53(2), or for an
educational institution other than an institution of higher
education
as defined in section 53(3), benefits shall not be paid
are not payable to an individual based on those services for any
week of unemployment beginning after December 31, 1977 that
commences during the period between 2 successive academic years or
during a similar period between 2 regular terms, whether or not
successive, or during a period of paid sabbatical leave provided
for in the individual's contract, to an individual if the
individual performs the service in the first of the academic years
or terms and if there is a contract or a reasonable assurance that
the individual will perform service in an instructional, research,
or principal administrative capacity for an institution of higher
education or an educational institution other than an institution
of higher education in the second of the academic years or terms,
whether or not the terms are successive.
(2) With respect to service performed in other than an
instructional, research, or principal administrative capacity for
an institution of higher education as defined in section 53(2) or
for an educational institution other than an institution of higher
education
as defined in section 53(3), benefits shall not be paid
are not payable based on those services for any week of
unemployment beginning after December 31, 1977 that commences
during the period between 2 successive academic years or terms to
any individual if that individual performs the service in the first
of the academic years or terms and if there is a reasonable
assurance that the individual will perform the service for an
institution of higher education or an educational institution other
than an institution of higher education in the second of the
academic years or terms.
(3) With respect to any service described in subdivision (1)
or
(2), benefits shall not be paid are
not payable to an individual
based upon service for any week of unemployment that commences
during an established and customary vacation period or holiday
recess if the individual performs the service in the period
immediately before the vacation period or holiday recess and there
is a contract or reasonable assurance that the individual will
perform the service in the period immediately following the
vacation period or holiday recess.
(4) If benefits are denied to an individual for any week
solely as a result of subdivision (2) and the individual was not
offered an opportunity to perform in the second academic year or
term the service for which reasonable assurance had been given, the
individual is entitled to a retroactive payment of benefits for
each week for which the individual had previously filed a timely
claim for benefits. An individual entitled to benefits under this
subdivision may apply for those benefits by mail in accordance with
R
421.210 of the Michigan administrative code Administrative Code
as promulgated by the commission.
(5) Benefits based upon services in other than an
instructional, research, or principal administrative capacity for
an
institution of higher education shall not be are not denied
for
any week of unemployment commencing during the period between 2
successive academic years or terms solely because the individual
had performed the service in the first of the academic years or
terms and there is reasonable assurance that the individual will
perform the service for an institution of higher education or an
educational institution other than an institution of higher
education in the second of the academic years or terms, unless a
denial is required as a condition for full tax credit against the
tax imposed by the federal unemployment tax act, 26 USC 3301 to
3311.
(6) For benefit years established before October 1, 2000, and
notwithstanding subdivisions (1), (2), and (3), the denial of
benefits does not prevent an individual from completing
requalifying weeks in accordance with section 29(3) nor does the
denial prevent an individual from receiving benefits based on
service with an employer other than an educational institution for
any week of unemployment occurring between academic years or terms,
whether or not successive, or during an established and customary
vacation period or holiday recess, even though the employer is not
the most recent chargeable employer in the individual's base
period. However, in that case section 20(b) applies to the sequence
of benefit charging, except for the employment with the educational
institution, and section 50(b) applies to the calculation of credit
weeks. When a denial of benefits under subdivision (1) no longer
applies,
benefits shall be are charged in accordance with the
normal sequence of charging as provided in section 20(b).
(7) For benefit years beginning on or after October 1, 2000,
and notwithstanding subdivisions (1), (2), and (3), the denial of
benefits
shall does not prevent an individual from completing
requalifying
weeks in accordance with section 29(3) nor shall the
denial
and does not prevent an individual from receiving benefits
based on service with another base period employer other than an
educational institution for any week of unemployment occurring
between academic years or terms, whether or not successive, or
during an established and customary vacation period or holiday
recess.
However, when if benefits are paid based on service with 1
or more base period employers other than an educational
institution,
the individual's weekly benefit rate shall be is
calculated in accordance with subsection (b)(1) but during the
denial
period the individual's weekly benefit payment shall be is
reduced by the portion of the payment attributable to base period
wages paid by an educational institution and the account or
experience
account of the educational institution shall is not
be
charged for benefits payable to the individual. When a denial of
benefits under subdivision (1) is no longer applicable, benefits
shall
be are paid and charged on the basis of base period wages
with each of the base period employers including the educational
institution.
(8) For the purposes of this subsection, "academic year" means
that period, as defined by the educational institution, when
classes are in session for that length of time required for
students to receive sufficient instruction or earn sufficient
credit to complete academic requirements for a particular grade
level or to complete instruction in a noncredit course.
(9) In accordance with subdivisions (1), (2), and (3),
benefits
for any week of unemployment shall be are denied to an
individual who performed services described in subdivision (1),
(2), or (3) in an educational institution while in the employ of an
educational service agency. For the purpose of this subdivision,
"educational service agency" means a governmental agency or
governmental entity that is established and operated exclusively
for the purpose of providing the services to 1 or more educational
institutions.
(j)
Benefits shall not be paid are
not payable to an
individual on the basis of any base period services, substantially
all of which consist of participating in sports or athletic events
or training or preparing to participate, for a week that commences
during the period between 2 successive sport seasons or similar
periods if the individual performed the services in the first of
the seasons or similar periods and there is a reasonable assurance
that the individual will perform the services in the later of the
seasons or similar periods.
(k)(1) Benefits are not payable on the basis of services
performed by an alien unless the alien is an individual who was
lawfully admitted for permanent residence at the time the services
were performed, was lawfully present for the purpose of performing
the services, or was permanently residing in the United States
under color of law at the time the services were performed,
including an alien who was lawfully present in the United States
under section 212(d)(5) of the immigration and nationality act, 8
USC 1182.
(2) Any data or information required of individuals applying
for benefits to determine whether benefits are payable because of
their alien status are uniformly required from all applicants for
benefits.
(3) If an individual's application for benefits would
otherwise be approved, a determination that benefits to that
individual are not payable because of the individual's alien status
shall
must not be made except upon a preponderance of the
evidence.
(m)(1) An individual filing a new claim for unemployment
compensation under this act, at the time of filing the claim, shall
disclose whether the individual owes child support obligations as
defined in this subsection. If an individual discloses that he or
she owes child support obligations and is determined to be eligible
for unemployment compensation, the unemployment agency shall notify
the state or local child support enforcement agency enforcing the
obligation that the individual has been determined to be eligible
for unemployment compensation.
(2) Notwithstanding section 30, the unemployment agency shall
deduct and withhold from any unemployment compensation payable to
an individual who owes child support obligations by using whichever
of the following methods results in the greatest amount:
(a) The amount, if any, specified by the individual to be
deducted and withheld under this subdivision.
(b) The amount, if any, determined pursuant to an agreement
submitted
to the commission under 42 USC 654(19)(b)(i),
654(19)(B)(i), by the state or local child support enforcement
agency.
(c) Any amount otherwise required to be deducted and withheld
from unemployment compensation by legal process, as that term is
defined in 42 USC 659(i)(5), properly served upon the commission.
(3) The amount of unemployment compensation subject to
deduction under subdivision (2) is that portion that remains
payable to the individual after application of the recoupment
provisions of section 62(a) and the reduction provisions of
subsections (c) and (f).
(4)
Any The unemployment
agency shall pay any amount deducted
and
withheld under subdivision (2) shall be paid by the commission
to the appropriate state or local child support enforcement agency.
(5) Any amount deducted and withheld under subdivision (2)
shall
be is treated for all purposes as if it were paid to the
individual as unemployment compensation and paid by the individual
to the state or local child support enforcement agency in
satisfaction of the individual's child support obligations.
(6) Provisions concerning deductions under this subsection
apply only if the state or local child support enforcement agency
agrees
in writing to reimburse and does reimburse the commission
unemployment agency for the administrative costs incurred by the
commission
unemployment agency under this subsection that are
attributable to child support obligations being enforced by the
state or local child support enforcement agency. The administrative
costs
incurred shall be are determined by the commission.
unemployment
agency. The commission, unemployment agency, in its
discretion, may require payment of administrative costs in advance.
(7) As used in this subsection:
(a) "Unemployment compensation", for purposes of subdivisions
(1) to (5), means any compensation payable under this act,
including
amounts payable by the commission unemployment agency
pursuant to an agreement under any federal law providing for
compensation, assistance, or allowances with respect to
unemployment.
(b) "Child support obligations" includes only obligations that
are being enforced pursuant to a plan described in 42 USC 654 that
has
been approved by the secretary of health and human services
Secretary of Health and Human Services under 42 USC 651 to 669b.
(c) "State or local child support enforcement agency" means
any agency of this state or a political subdivision of this state
operating pursuant to a plan described in subparagraph (b).
(n) Subsection (i)(2) applies to services performed by school
bus drivers employed by a private contributing employer holding a
contractual relationship with an educational institution, but only
if at least 75% of the individual's base period wages with that
employer are attributable to services performed as a school bus
driver. Subsection (i)(1) and (2) but not subsection (i)(3) applies
to other services described in those subdivisions that are
performed by any employees under an employer's contract with an
educational institution or an educational service agency.
(o)(1) For weeks of unemployment beginning after July 1, 1996,
unemployment benefits based on services by a seasonal worker
performed in seasonal employment are payable only for weeks of
unemployment that occur during the normal seasonal work period.
Benefits
shall not be paid are not
payable based on services
performed in seasonal employment for any week of unemployment
beginning after March 28, 1996 that begins during the period
between 2 successive normal seasonal work periods to any individual
if that individual performs the service in the first of the normal
seasonal work periods and if there is a reasonable assurance that
the individual will perform the service for a seasonal employer in
the second of the normal seasonal work periods. If benefits are
denied to an individual for any week solely as a result of this
subsection and the individual is not offered an opportunity to
perform in the second normal seasonal work period for which
reasonable assurance of employment had been given, the individual
is entitled to a retroactive payment of benefits under this
subsection for each week that the individual previously filed a
timely claim for benefits. An individual may apply for any
retroactive benefits under this subsection in accordance with R
421.210
of the Michigan administrative code.Administrative Code.
(2) Not less than 20 days before the estimated beginning date
of a normal seasonal work period, an employer may apply to the
commission in writing for designation as a seasonal employer. At
the time of application, the employer shall conspicuously display a
copy of the application on the employer's premises. Within 90 days
after receipt of the application, the commission shall determine if
the employer is a seasonal employer. A determination or
redetermination of the commission concerning the status of an
employer as a seasonal employer, or a decision of an administrative
law judge, the Michigan compensation appellate commission, or the
courts of this state concerning the status of an employer as a
seasonal employer, which has become final, together with the record
thereof, may be introduced in any proceeding involving a claim for
benefits, and the facts found and decision issued in the
determination,
redetermination, or decision shall be is conclusive
unless substantial evidence to the contrary is introduced by or on
behalf of the claimant.
(3) If the employer is determined to be a seasonal employer,
the employer shall conspicuously display on its premises a notice
of the determination and the beginning and ending dates of the
employer's
normal seasonal work periods. The notice shall be
furnished
by the commission. The
commission shall furnish the
notice.
The notice shall must additionally
specify that an employee
must timely apply for unemployment benefits at the end of a first
seasonal work period to preserve his or her right to receive
retroactive unemployment benefits if he or she is not reemployed by
the seasonal employer in the second of the normal seasonal work
periods.
(4) The commission may issue a determination terminating an
employer's status as a seasonal employer on the commission's own
motion for good cause, or upon the written request of the employer.
A termination determination under this subdivision terminates an
employer's status as a seasonal employer, and becomes effective on
the beginning date of the normal seasonal work period that would
have immediately followed the date the commission issues the
determination. A determination under this subdivision is subject to
review in the same manner and to the same extent as any other
determination under this act.
(5) An employer whose status as a seasonal employer is
terminated under subdivision (4) may not reapply for a seasonal
employer status determination until after a regularly recurring
normal seasonal work period has begun and ended.
(6) If a seasonal employer informs an employee who received
assurance of being rehired that, despite the assurance, the
employee will not be rehired at the beginning of the employer's
next normal seasonal work period, this subsection does not prevent
the employee from receiving unemployment benefits in the same
manner and to the same extent he or she would receive benefits
under this act from an employer who has not been determined to be a
seasonal employer.
(7) A successor of a seasonal employer is considered to be a
seasonal employer unless the successor provides the commission,
within 120 days after the transfer, with a written request for
termination of its status as a seasonal employer in accordance with
subdivision (4).
(8) At the time an employee is hired by a seasonal employer,
the employer shall notify the employee in writing if the employee
will be a seasonal worker. The employer shall provide the worker
with written notice of any subsequent change in the employee's
status as a seasonal worker. If an employee of a seasonal employer
is denied benefits because that employee is a seasonal worker, the
employee may contest that designation in accordance with section
32a.
(9) As used in this subsection:
(a) "Construction industry" means the work activity designated
in sector group 23 - construction of the North American
classification
system - United States office of management and
budget,
Office of Management and
Budget, 1997 edition.
(b) "Normal seasonal work period" means that period or those
periods of time determined under rules promulgated by the
commission
unemployment agency during which an individual is
employed in seasonal employment.
(c) "Seasonal employment" means the employment of 1 or more
individuals primarily hired to perform services during regularly
recurring periods of 26 weeks or less in any 52-week period other
than services in the construction industry.
(d) "Seasonal employer" means an employer, other than an
employer in the construction industry, who applies to the
commission
unemployment agency for designation as a seasonal
employer
and who the commission unemployment
agency determines is
an employer whose operations and business require employees engaged
in seasonal employment. A seasonal employer designation under this
act need not correspond to a category assigned under the North
American
classification system — United States office of management
and
budget.Office of Management
and Budget.
(e) "Seasonal worker" means a worker who has been paid wages
by a seasonal employer for work performed only during the normal
seasonal work period.
(10) This subsection does not apply if the United States
department
of labor Department of Labor finds it to be contrary to
the federal unemployment tax act, 26 USC 3301 to 3311, or the
social
security act, chapter 531, 49 Stat. Stat 620, and if
conformity with the federal law is required as a condition for full
tax credit against the tax imposed under the federal unemployment
tax act, 26 USC 3301 to 3311, or as a condition for receipt by the
commission of federal administrative grant funds under the social
security
act, chapter 531, 49 Stat. Stat
620.
(p)
Benefits shall not be paid are
not payable to an
individual based upon his or her services as a school crossing
guard for any week of unemployment that begins between 2 successive
academic years or terms, if that individual performs the services
of a school crossing guard in the first of the academic years or
terms and has a reasonable assurance that he or she will perform
those services in the second of the academic years or terms.
Sec. 32. (a) Claims for benefits shall be made pursuant to
regulations prescribed by the unemployment agency. The unemployment
agency shall designate representatives who shall promptly examine
claims and make a determination on the facts. The unemployment
agency may establish rules providing for the examination of claims,
the determination of the validity of the claims, and the amount and
duration of benefits to be paid. The claimant and other interested
parties shall be promptly notified of the determination and the
reasons for the determination.
(b) The unemployment agency shall mail to the claimant, to
each base period employer or employing unit, and to the separating
employer or employing unit, a monetary determination. The monetary
determination shall notify each of these employers or employing
units that the claimant has filed an application for benefits and
the amount the claimant reported as earned with the separating
employer or employing unit, and shall state the name of each
employer or employing unit in the base period and the name of the
separating employer or employing unit. The monetary determination
shall also state the claimant's weekly benefit rate, the amount of
base period wages paid by each base period employer, the maximum
benefit amount that could be charged to each employer's account or
experience account, and the reason for separation reported by the
claimant. The monetary determination shall also state whether the
claimant is monetarily eligible to receive unemployment benefits.
Except for separations under section 29(1)(a), no further
reconsideration of a separation from any base period employer will
be made unless the base period employer notifies the unemployment
agency of a possible disqualifying separation within 30 days of the
separation in accordance with this subsection. Charges to the
employer and payments to the claimant shall be as described in
section 20(a). New, additional, or corrected information received
by the unemployment agency more than 10 days after mailing the
monetary determination shall be considered a request for
reconsideration by the employer of the monetary determination and
shall be reviewed as provided in section 32a.
(c) For the purpose of determining a claimant's nonmonetary
eligibility and qualification for benefits, if the claimant's most
recent base period or benefit year separation was for a reason
other than the lack of work, then a determination shall be issued
concerning that separation to the claimant and to the separating
employer. If a claimant is not disqualified based on his or her
most recent separation from employment and has satisfied the
requirements of section 29, the unemployment agency shall issue a
nonmonetary determination as to that separation only. If a claimant
is not disqualified based on his or her most recent separation from
employment and has not satisfied the requirements of section 29,
the unemployment agency shall issue 1 or more nonmonetary
determinations necessary to establish the claimant's qualification
for benefits based on any prior separation in inverse chronological
order. The unemployment agency shall consider all base period
separations involving disqualifications under section 29(1)(h),
(i), (j), (k), (m), or (n) in determining a claimant's nonmonetary
eligibility and qualification for benefits. An employer may
designate in writing to the unemployment agency an individual or
another employer or an employing unit to receive any notice
required to be given by the unemployment agency to that employer or
to represent that employer in any proceeding before the
unemployment agency as provided in section 31.
(d) If the unemployment agency requests additional monetary or
nonmonetary information from an employer or employing unit and the
unemployment agency fails to receive a written response from the
employer or employing unit within 10 calendar days after the date
of mailing the request for information, the unemployment agency
shall make a determination based upon the available information at
the time the determination is made. Charges to the employer and
payments to the claimant shall be as described in section 20(a).
(e) The claimant or interested party may file an application
with an office of the unemployment agency for a redetermination in
accordance with section 32a.
(f) The issuance of each benefit check shall be considered a
determination by the unemployment agency that the claimant
receiving the check was covered during the compensable period, and
eligible and qualified for benefits. A chargeable employer, upon
receipt of a listing of the check as provided in section 21(a), may
protest by requesting a redetermination of the claimant's
eligibility or qualification as to that period and a determination
as to later weeks and benefits still unpaid that are affected by
the protest. Upon receipt of the protest or request, the
unemployment agency shall investigate and redetermine whether the
claimant is eligible and qualified as to that period. If, upon the
redetermination, the claimant is found ineligible or not qualified,
the unemployment agency shall proceed as described in section 62.
In addition, the unemployment agency shall investigate and
determine whether the claimant obtained benefits for 1 or more
preceding weeks within the series of consecutive weeks that
includes the week covered by the redetermination and, if so, shall
proceed as described in section 62 as to those weeks.
(g) If a claimant commences to file continued claims through a
different state claim office in this state or elsewhere, the
unemployment agency promptly shall issue written notice of that
fact to the chargeable employer.
(h) If a claimant refuses an offer of work, or fails to apply
for work of which the claimant has been notified, as provided in
section 29(1)(c) or (e), the unemployment agency shall promptly
make a written determination as to whether or not the refusal or
failure requires disqualification under section 29. Notice of the
determination, specifying the name and address of the employing
unit offering or giving notice of the work and of the chargeable
employer, shall be sent to the claimant, the employing unit
offering or giving notice of the work, and the chargeable employer.
(i) The unemployment agency shall issue a notification to the
claimant of claimant rights and responsibilities within 2 weeks
after the initial benefit payment on a claim and 6 months after the
initial benefit payment on the claim. If the claimant selected a
preferred form of communication, the notification must be conveyed
by that form. Issuing the notification must not delay or interfere
with the claimant's benefit payment. The notification must contain
clear and understandable information pertaining to all of the
following:
(i) Determinations as provided in section 62.
(ii) Penalties and other sanctions as provided in this act.
(iii) Legal right to protest the determination and the right
to appeal through the administrative hearing system.
(iv) Other information needed to understand and comply with
agency rules and regulations not specified in this section.
Sec. 54. (a) A person, including a claimant for unemployment
benefits, an employing entity, or an owner, director, or officer of
an employing entity, who willfully violates or intentionally fails
to comply with any of the provisions of this act, or a regulation
of the unemployment agency promulgated under the authority of this
act for which a penalty is not otherwise provided by this act is
subject to the following sanctions, notwithstanding any other
statute of this state or of the United States:
(i) If the unemployment agency determines that an amount has
been obtained or withheld as a result of the intentional failure to
comply with this act, the unemployment agency may recover the
amount obtained as a result of the intentional failure to comply
plus damages equal to 3 times that amount.
(ii) The unemployment agency may refer the matter to the
prosecuting attorney of the county in which the alleged violation
occurred for prosecution. If the unemployment agency has not made
its own determination under subdivision (i), the recovery sought by
the prosecutor shall include the amount described in subdivision
(i) and shall also include 1 or more of the following penalties:
(A) Subject to redesignation under subsection (l), if the
amount obtained or withheld from payment as a result of the
intentional failure to comply is less than $25,000.00, then 1 of
the following:
(I) Imprisonment for not more than 1 year.
(II) The performance of community service of not more than 1
year but not to exceed 2,080 hours.
(III) A combination of (I) and (II) that does not exceed 1
year.
(B) If the amount obtained or withheld from payment as a
result of the intentional failure to comply is $25,000.00 or more
but less than $100,000.00, then 1 of the following:
(I) Imprisonment for not more than 2 years.
(II) The performance of community service of not more than 2
years but not to exceed 4,160 hours.
(III) A combination of (I) and (II) that does not exceed 2
years.
(C) If the amount obtained or withheld from payment as a
result of the intentional failure to comply is more than
$100,000.00, then 1 of the following:
(I) Imprisonment for not more than 5 years.
(II) The performance of community service of not more than 5
years but not to exceed 10,400 hours.
(III) A combination of (I) and (II) that does not exceed 5
years.
(iii) If the unemployment agency determines that an amount has
been obtained or withheld as a result of a knowing violation of
this act, the unemployment agency may recover the amount obtained
as a result of the knowing violation and may also recover damages
equal to 3 times that amount.
(iv) The unemployment agency may refer a matter under
subdivision (iii) to the prosecuting attorney of the county in
which the alleged violation occurred for prosecution. If the
unemployment agency has not made its own determination under
subdivision (iii), the recovery sought by the prosecutor shall
include the amount described in subdivision (iii) and shall also
include 1 or more of the following penalties:
(A) Subject to redesignation under subsection (l), if the
amount obtained or withheld from payment as a result of the knowing
violation is $100,000.00 or less, then 1 of the following:
(I) Imprisonment for not more than 1 year.
(II) The performance of community service of not more than 1
year but not to exceed 2,080 hours.
(III) A combination of (I) and (II) that does not exceed 1
year.
(B) If the amount obtained or withheld from payment as a
House Bill No. 4982 as amended December 8, 2016
result of the knowing violation is more than $100,000.00, then 1 of
the following:
(I) Imprisonment for not more than 2 years.
(II) The performance of community service of not more than 2
years but not to exceed 4,160 hours.
(III) A combination of (I) and (II) that does not exceed 2
years.
(b) Any employing unit or an owner, director, officer, or
agent of an employing unit, a claimant, an employee of the
unemployment agency, or any other person who makes a false
statement or representation knowing it to be false, or knowingly
and willfully with intent to defraud fails to disclose a material
fact, to obtain or increase a benefit or other payment under this
act or under the unemployment compensation law of any state or of
the federal government, either for himself or herself or any other
person, to prevent or reduce the payment of benefits to an
individual entitled thereto or to avoid becoming or remaining a
subject employer, or to avoid or reduce a contribution or other
payment required from an employing unit under this act or under the
unemployment compensation law of any state or of the federal
government, as applicable, is subject to administrative fines and
is
punishable as follows, provided
in this subsection,
notwithstanding any other penalties imposed under any other statute
of this state or of the United States. [For benefit years beginning on or
after May 1, 2017, to] establish fraud based on
unreported earnings under this subsection, the unemployment agency
must have in its possession the weekly wage information from the
employer. A violation of this subsection is punishable as follows:
(i) If the amount obtained as a result of the knowing false
statement or representation or the knowing and willful failure to
disclose a material fact is less than $500.00, the unemployment
agency may recover the amount obtained as a result of the knowing
false statement or representation or the knowing and willful
failure to disclose a material fact and may also recover damages
equal to 2 times that amount. For a second or subsequent violation
described in this subdivision, the unemployment agency may recover
damages equal to 4 times the amount obtained.
(ii) If the amount obtained as a result of the knowing false
statement or representation or the knowing and willful failure to
disclose a material fact is $500.00 or more, the unemployment
agency shall attempt to recover the amount obtained as a result of
the knowing false statement or representation or the knowing and
willful failure to disclose a material fact and may also recover
damages equal to 4 times that amount. The unemployment agency may
refer the matter to the prosecuting attorney of the county in which
the alleged violation occurred for prosecution. If the unemployment
agency has not made its own determination under this subdivision,
the recovery sought by the prosecutor shall include the amount
described in this subdivision and shall also include 1 or more of
the following penalties if the amount obtained is $1,000.00 or
more:
(A) Subject to redesignation under subsection (l), if the
amount obtained or withheld from payment as a result of the knowing
false statement or representation or the knowing and willful
failure to disclose a material fact is $1,000.00 or more but less
than $25,000.00, then 1 of the following:
(I) Imprisonment for not more than 1 year.
(II) The performance of community service of not more than 1
year but not to exceed 2,080 hours.
(III) A combination of (I) and (II) that does not exceed 1
year.
(B) If the amount obtained or withheld from payment as a
result of the knowing false statement or representation or the
knowing and willful failure to disclose a material fact is
$25,000.00 or more, then 1 of the following:
(I) Imprisonment for not more than 2 years.
(II) The performance of community service of not more than 2
years but not to exceed 4,160 hours.
(III) A combination of (I) and (II) that does not exceed 2
years.
(C) If the knowing false statement or representation or the
knowing and willful failure to disclose a material fact made to
obtain or withhold an amount from payment does not result in a loss
to the commission, then a recovery shall be sought equal to 3 times
the amount that would have been obtained by the knowing false
statement or representation or the knowing and willful failure to
disclose a material fact, but not less than $1,000.00, and 1 of the
following:
(I) Imprisonment for not more than 2 years.
(II) The performance of community service of not more than 2
years but not to exceed 4,160 hours.
(III) A combination of (I) and (II) that does not exceed 2
years.
(c) (1) Any employing unit or an owner, director, officer, or
agent of an employing unit or any other person failing to submit,
when due, any contribution report, wage and employment report, or
other reports lawfully prescribed and required by the unemployment
agency shall be subject to the assessment of an administrative fine
for each report not submitted within the time prescribed by the
unemployment agency, as follows: In the case of contribution
reports not received within 10 days after the end of the reporting
month the fine shall be 10% of the contributions due on the reports
but not less than $5.00 or more than $25.00 for a report. However,
if the tenth day falls on a Saturday, Sunday, legal holiday, or
other unemployment agency nonwork day, the 10-day period shall run
until the end of the next day that is not a Saturday, Sunday, legal
holiday, or other unemployment agency nonwork day. In the case of
all other reports referred to in this subsection, the fine shall be
$10.00 for a report.
(2) Notwithstanding subdivision (1), any employer or an owner,
director, officer, or agent of an employer or any other person
failing to submit, when due, any quarterly wage detail report
required by section 13(2), or submitting an incomplete or erroneous
report, is subject to an administrative fine of $50.00 for each
untimely report, incomplete report, or erroneous report if the
report is filed not later than 30 days after the date the report is
due, $250.00 if the report is filed more than 1 calendar quarter
after the date the report is due, and an additional $250.00 for
each additional calendar quarter that the report is late, except
that no penalty shall apply if the employer files a corrected
report within 14 days after notification of an error by the agency.
(3) If a report is filed after the prescribed time and it is
shown to the satisfaction of the commission that the failure to
submit the report was due to reasonable cause, a fine shall not be
imposed. The assessment of a fine as provided in this subsection
constitutes a final determination unless the employer files an
application with the unemployment agency for a redetermination of
the assessment in accordance with section 32a.
(d) If any employee or agent of the unemployment agency or
member of the Michigan compensation appellate commission willfully
discloses confidential information obtained from any employing unit
or individual in the administration of this act for any purpose
inconsistent with or contrary to the purposes of this act, or a
person who obtains a list of applicants for work or of claimants or
recipients of benefits under this act uses or permits use of that
list for a political purpose or for a purpose inconsistent with or
contrary to the purposes of this act, he or she is guilty of a
misdemeanor punishable by imprisonment for not more than 90 days or
a fine of not more than $1,000.00, or both. Notwithstanding the
preceding sentence, if any unemployment agency employee, agent of
the unemployment agency, or member of the Michigan compensation
appellate commission knowingly, intentionally, and for financial
gain, makes an illegal disclosure of confidential information
obtained under section 13(2), he or she is guilty of a felony,
punishable by imprisonment for not more than 1 year and 1 day.
(e) A person who, without proper authority from the
unemployment agency, represents himself or herself to be an
employee of the unemployment agency for the purpose of securing
information regarding the unemployment or employment record of an
individual is guilty of a misdemeanor punishable by imprisonment
for not more than 90 days or a fine of not more than $1,000.00, or
both.
(f) A person associated with a college, university, or public
agency of this state who makes use of any information obtained from
the unemployment agency in connection with a research project of a
public service nature, in a manner as to reveal the identity of any
individual or employing unit from or concerning whom the
information was obtained by the unemployment agency, or for any
purpose other than use in connection with that research project, is
guilty of a misdemeanor punishable by imprisonment for not more
than 90 days or a fine of not more than $1,000.00, or both.
(g) As used in this section, "person" includes an individual;
owner, director, or officer of an employing entity; copartnership;
joint venture; corporation; receiver; or trustee in bankruptcy.
(h) This section applies even if the amount obtained or
withheld from payment has been reported or reported and paid by an
individual involved in a violation of subsection (a) or (b).
(i) If a determination is made that an individual has violated
this section, the individual is subject to the sanctions of this
section and, if applicable, the requirements of section 62.
(j) Amounts recovered by the commission under subsection (a)
shall be credited first to the unemployment compensation fund and
thereafter amounts recovered that are in excess of the amounts
obtained or withheld as a result of the violation of subsection (a)
shall be credited to the penalty and interest account of the
contingent fund. Amounts recovered by the commission under
subsections (c), (d), (e), and (f) shall be credited to the penalty
and interest account of the contingent fund in accordance with
section 10(6).
(k) Amounts recovered by the unemployment agency under
subsection (b) shall be credited in the following order:
(i) From the penalty assessment recovered, an amount equal to
15% of any benefit overpayments resulting from fraud shall be
credited to the unemployment compensation fund.
(ii) For the balance of deductions from unemployment insurance
benefits, to the liability for benefit repayment under this
section.
(iii) For all other recoveries, the balance shall first be
credited to the unemployment compensation fund for repayment of any
remaining amounts owed, and then to the contingent fund to be
applied first to administrative sanctions and damages and then to
interest.
(l) A person who obtains or withholds an amount of
unemployment benefits or payments exceeding $3,500.00 but less than
$25,000.00 as a result of a knowing false statement or
representation or the knowing and willful failure to disclose a
material fact is guilty of a felony punishable as provided in
subsection (a)(ii)(A) or (iv)(A) or subsection (b)(ii)(A).
(m) An unemployment agency determination under this section
shall not be based solely on a computer-identified discrepancy in
information supplied by the claimant or employer. An unemployment
agency employee or agent must examine the facts and independently
determine that the claimant or the employer is responsible for a
willful or intentional violation before the agency makes a
determination under this section.
Sec. 62. (a) If the unemployment agency determines that a
person has obtained benefits to which that person is not entitled,
or a subsequent determination by the agency or a decision of an
appellate authority reverses a prior qualification for benefits,
the agency may recover a sum equal to the amount received plus
interest by 1 or more of the following methods: deduction from
benefits or wages payable to the individual, payment by the
individual in cash, or deduction from a tax refund payable to the
individual as provided under section 30a of 1941 PA 122, MCL
205.30a. Deduction from benefits or wages payable to the individual
is limited to not more than 50% of each payment due the claimant.
The unemployment agency shall issue a determination requiring
restitution within 3 years after the date of finality of a
determination, redetermination, or decision reversing a previous
finding
of benefit entitlement. The Except
in the case of benefits
improperly paid because of suspected identity fraud, the
unemployment agency shall not initiate administrative or court
action to recover improperly paid benefits from an individual more
than 3 years after the date that the last determination,
redetermination,
or decision establishing restitution is final. The
Except in the case of benefits improperly paid because of suspected
identity fraud, the unemployment agency shall issue a determination
on an issue within 3 years from the date the claimant first
received benefits in the benefit year in which the issue arose, or
in the case of an issue of intentional false statement,
misrepresentation, or concealment of material information in
violation
of section 54(a) or (b) or sections 54a to 54c, within 6
3 years after the receipt of the improperly paid benefits unless
the unemployment agency filed a civil action in a court within the
3-year
or 6-year period; the individual made an intentional false
statement, misrepresentation, or concealment of material
information to obtain the benefits; or the unemployment agency
issued
a determination requiring restitution within the 3-year or
6-year
period. The time limits in this section do not
prohibit the
unemployment agency from pursuing collection methods to recover the
amounts found to have been improperly paid. Except in a case of an
intentional false statement, misrepresentation, or concealment of
material information, the unemployment agency shall waive recovery
of an improperly paid benefit if the payment was not the fault of
the individual and if repayment would be contrary to equity and
good conscience and shall waive any interest. If the agency or an
appellate authority waives collection of restitution and interest,
except as provided in subdivision (ii), the waiver is prospective
and does not apply to restitution and interest payments already
made by the individual. As used in this subsection, "contrary to
equity and good conscience" means any of the following:
(i) The claimant provided incorrect wage information without
the intent to misrepresent, and the employer provided either no
wage information upon request or provided inaccurate wage
information that resulted in the overpayment.
(ii) The claimant's disposable household income, exclusive of
social welfare benefits, is at or below the annual update of the
poverty
guidelines most recently published in the federal register
Federal
Register by the United States department
Department of
health
Health and human services Human Services under the authority
of 42 USC 9902(2), and the claimant has applied for a waiver under
this subsection. A waiver granted under the conditions described in
this subdivision applies from the date the application is filed.
(iii) The improper payments resulted from an administrative or
clerical error by the unemployment agency. A requirement to repay
benefits as the result of a change in judgment at any level of
administrative adjudication or court decision concerning the facts
or application of law to a claim adjudication is not an
administrative or clerical error for purposes of this subdivision.
(b) For benefit years beginning on or after October 1, 2000,
if the unemployment agency determines that a person has
intentionally made a false statement or misrepresentation or has
concealed material information to obtain benefits, whether or not
the person obtains benefits by or because of the intentional false
statement, misrepresentation, or concealment of material
information, the person shall, in addition to any other applicable
interest and penalties, have his or her rights to benefits for the
benefit year in which the act occurred canceled as of the date the
claimant made the false statement or misrepresentation or concealed
material information, and wages used to establish that benefit year
shall not be used to establish another benefit year. A chargeable
employer may protest a claim filed after October 1, 2014 to
establish a successive benefit year under section 46(c), if there
was a determination by the unemployment agency or decision of a
court or administrative tribunal finding that the claimant made a
false statement, made a misrepresentation, or concealed material
information related to his or her report of earnings for a
preceding benefit year claim. If a protest is made, any unreported
earnings from the preceding benefit year that were falsely stated,
misrepresented, or concealed shall not be used to establish a
benefit year for a successive claim. Before receiving benefits in a
benefit year established within 4 years after cancellation of
rights to benefits under this subsection, the individual, in
addition to making the restitution of benefits established under
subsection (a), may be liable for an additional amount as otherwise
determined by the unemployment agency under this act, which may be
paid by cash, deduction from benefits, or deduction from a tax
refund. The individual is liable for any fee the federal government
imposes with respect to instituting a deduction from a federal tax
refund. Restitution resulting from the intentional false statement,
misrepresentation, or concealment of material information is not
subject to the 50% limitation provided in subsection (a).
(c) Any determination made by the unemployment agency under
this section is final unless an application for a redetermination
is filed in accordance with section 32a.
(d) The unemployment agency shall take the action necessary to
recover all benefits improperly obtained or paid under this act,
and to enforce all interest and penalties under subsection (b). The
unemployment agency may conduct an amnesty program for a designated
period under which penalties and interest assessed against an
individual owing restitution for improperly paid benefits may be
waived if the individual pays the full amount of restitution owing
within the period specified by the agency.
(e) Interest recovered under this section shall be deposited
in the contingent fund.
(f) An unemployment agency determination that a claimant made
an intentional false statement, misrepresentation, or concealment
of material information that is subject to sanctions under this
section shall not be based solely on a computer-identified
discrepancy in information supplied by the claimant or employer. An
unemployment agency employee or agent must examine the facts and
independently determine that the claimant or the employer is
responsible for a willful or intentional violation before the
agency makes a determination under this section.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
