Bill Text: MI SB0401 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Employment security; benefits; nonchargeable benefits; modify. Amends sec. 17 of 1936 (Ex Sess) PA 1 (MCL 421.17).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2009-03-25 - Referred To Committee On Labor [SB0401 Detail]
Download: Michigan-2009-SB0401-Engrossed.html
SB-0401, As Passed Senate, March 25, 2009
SENATE BILL No. 401
March 19, 2009, Introduced by Senator HUNTER and referred to the Committee on Commerce and Tourism.
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending section 17 (MCL 421.17), as amended by 2003 PA 174.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 17. (1) The bureau shall maintain in the unemployment
compensation fund a nonchargeable benefits account and a separate
experience account for each employer as provided in this section.
This act does not give an employer or individuals in the employer's
service prior claims or rights to the amount paid by the employer
to the unemployment compensation fund. All contributions to that
fund shall be pooled and available to pay benefits to any
individual entitled to the benefits under this act, irrespective of
the source of the contributions.
(2) The nonchargeable benefits account shall be credited with
the following:
(a) All net earnings received on money, property, or
securities in the fund.
(b) Any positive balance remaining in the employer's
experience account as of the second June 30 computation date
occurring after the employer has ceased to be subject to this act
or after the employer has elected to change from a contributing
employer to a reimbursing employer.
(c) The proceeds of the nonchargeable benefits component of
employers' contribution rates determined as provided in section
19(a)(5).
(d) All reimbursements received under section 11(c).
(e)
All amounts which that may be paid or advanced by the
federal government under section 903 or section 1201 of the social
security
act, 42 U.S.C. USC 1103 and 1321, to the account of the
state in the federal unemployment trust fund.
(f)
All benefits improperly paid to claimants which that
have
been
recovered and which that were previously charged to an
employer's account.
(g) Any benefits forfeited by an individual by application of
section 62(b).
(h) The amount of any benefit check, any employer refund
check,
or any claimant restitution refund check duly issued which
that has not been presented for payment within 1 year after the
date of issue.
(i) Any other unemployment fund income not creditable to the
experience account of any employer.
(j) Any negative balance transferred to an employer's new
experience account pursuant to this section.
(k)
Amounts transferred from the contingent fund pursuant to
under section 10.
(3) The nonchargeable benefits account shall be charged with
the following:
(a) Any negative balance remaining in an employer's experience
account as of the second June 30 computation date occurring after
the employer has ceased to be subject to this act or has elected to
change from a contributing employer to a reimbursing employer.
(b) Refunds of amounts erroneously collected due to the
nonchargeable benefits component of an employer's contribution
rate.
(c) All training benefits paid under section 27(g) not
reimbursable by the federal government and based on service with a
contributing employer.
(d) Any positive balance credited or transferred to an
employer's
new experience account pursuant to under this
subsection.
(e) Repayments to the federal government of amounts advanced
by
it under section 1201 of the social security act, 42 U.S.C. USC
1321, to the unemployment compensation fund established by this
act.
(f) The amounts received by the unemployment compensation fund
under
section 903 of the social security act, 42 U.S.C. USC
1103,
that may be appropriated to the bureau in accordance with
subsection (8).
(g) All benefits determined to have been improperly paid to
claimants
which that have been credited to employers' accounts in
accordance with section 20(a).
(h) The amount of any substitute check issued to replace an
uncashed benefit check, employer refund check, or claimant
restitution refund check previously credited to this account.
(i)
The amount of any benefit check issued which that
would be
chargeable to the experience account of an employer who has ceased
to be subject to this act, and who has had a balance transferred
from the employer's experience account to the solvency or
nonchargeable benefits account.
(j)
All benefits which that become nonchargeable to an
employer under section 29(3) or section 19(b) or (c).
(k)
For benefit years beginning before the conversion date
prescribed
in section 75 October 1, 2000, with benefits allocated
under section 20(e)(2) for a week of unemployment in which a
claimant
earns remuneration with a contributing employer which that
equals or exceeds the amount of benefits allocated to that
contributing
employer, and for benefit years beginning after the
conversion
date prescribed in section 75 on
or after October 1,
2000, with benefits allocated under section 20(e)(3) for a week of
unemployment in which a claimant earns remuneration with a
contributing
employer which that equals or exceeds the amount of
benefits allocated to that contributing employer.
(l) Benefits that are nonchargeable to an employer's account in
accordance with section 20(i).
(m)
The share of extended benefits otherwise charged to the
account
of a contributing employer, but only during a period when
extended
benefits are paid based on the average rate of total
unemployment
in accordance with section 64(5)(c)(ii).
(4) All contributions paid by an employer shall be credited to
the unemployment compensation fund, and, except as otherwise
provided with respect to the proceeds of the nonchargeable benefits
component of employers' contribution rates by section 19(a)(5), to
the employer's experience account, as of the date when paid.
However, those contributions paid during any July shall be credited
as of the immediately preceding June 30. Additional contributions
paid by an employer as the result of a retroactive contribution
rate adjustment, solely for the purpose of this subsection, shall
be credited to the employer's experience account as if paid when
due, if the payment is received within 30 days after the issuance
of
the initial assessment which that results from the contribution
rate adjustment and a written request for the application is filed
by the employer during this period.
(5) If an employer who has ceased to be subject to this act,
and who has had a positive balance transferred as provided in
subsection (2) from the employer's experience account to the
solvency or nonchargeable benefits account as of the second
computation date after the employer has ceased to be subject to
this act, becomes subject to this act again within 6 years after
that computation date, the employer may apply, within 60 days after
the bureau's determination that the employer is again subject to
this act, to the bureau to have the positive balance, adjusted by
the debits and credits as have been made subsequent to the date of
transfer, credited to the employer's new experience account. If the
application is timely, the bureau shall credit the positive balance
to the employer's new experience account.
(6) If an employer's status as a reimbursing employer is
terminated within 6 years after the date the employer's experience
account as a prior contributing employer was transferred to the
solvency or nonchargeable benefits account as provided in
subsection (2) or (3) and the employer continues to be subject to
this act as a contributing employer, any positive or negative
balance in the employer's experience account as a prior
contributing employer, which was transferred to the solvency or
nonchargeable benefits account, shall be transferred to the
employer's new experience account. However, an employer who is
delinquent with respect to any reimbursement payments in lieu of
contributions for which the employer may be liable shall not have a
positive balance transferred during the delinquency.
(7) If a balance is transferred to an employer's new account
under subsection (5) or (6), the employer shall not be considered a
"qualified employer" until the employer has again been subject to
this act for the period set forth in section 19(a)(1).
(8) All money credited under section 903 of the social
security
act, 42 U.S.C. USC 1103, to the account of the state in
the federal unemployment trust fund shall immediately be credited
by the bureau to the fund's nonchargeable benefits account. There
is authorized to be appropriated to the bureau from the money
credited to the nonchargeable benefits account under this
subsection, an amount determined to be necessary for the proper and
efficient administration by the bureau of this act for purposes for
which federal grants under Title 3 of the social security act, 42
U.S.C.
USC 501 to 504, and the Wagner-Peyser national
employment
system
act, 29 U.S.C. USC
49 to 49k 49l-2, are not available or are
insufficient. The appropriation shall expire not more than 2 years
after the date of enactment and shall provide that any unexpended
balance shall then be credited to the nonchargeable benefits
account. An appropriation shall not be made under this subsection
for
an amount which that exceeds the "adjusted balance" of the
nonchargeable benefits account on the most recent computation date.
Appropriations made under this subsection shall limit the total
amount
which that may be obligated by the bureau during a fiscal
year
to an amount which that does not exceed the amount by which
the aggregate of the amounts credited to the nonchargeable benefits
account under this subsection during the fiscal year and the 24
preceding fiscal years, exceeds the aggregate of the amounts
obligated
by the bureau pursuant to by
appropriation under this
subsection and charged against the amounts thus credited to the
nonchargeable benefits account during any of the 25 fiscal years
and any amounts credited to the nonchargeable benefits account
which
that have been used for the payment of benefits.
(9)
Section 17(3)(m) is effective with respect to benefit
charges
for extended benefits paid for weeks of unemployment
beginning
the week after the week in which this subsection is
effective
and ending the week ending January 17, 2004.
