Bill Text: MI SB0612 | 2009-2010 | 95th Legislature | Engrossed

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Bill Title: Employment security; administration; disposition of interest collected; provide for. Amends sec. 62 of 1936 (Ex Sess) PA 1 (MCL 421.62). TIE BAR WITH: SB 0613'09, SB 0614'09, SB 0615'09

Spectrum: Partisan Bill (Republican 10-0)

Status: (Engrossed - Dead) 2009-06-25 - Referred To Committee On Labor [SB0612 Detail]

Download: Michigan-2009-SB0612-Engrossed.html

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SB-0612, As Passed Senate, June 25, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 612

 

 

May 27, 2009, Introduced by Senators ALLEN, PATTERSON, BIRKHOLZ, PAPPAGEORGE, BROWN, JANSEN, CROPSEY, VAN WOERKOM, KAHN and SANBORN 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 62 (MCL 421.62), as amended by 1995 PA 125.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 62. (1) (a) If the commission unemployment agency

 

determines that a person has obtained benefits to which that person

 

is not entitled, the commission may recover a sum equal to the

 

amount received plus interest by 1 or more of the following

 

methods: (1) deduction

 

     (a) Deduction from benefits payable to the individual. , (2)

 

payment

 

     (b) Payment by the individual to the commission in cash. , or

 

(3) deduction

 

     (c) Deduction from a tax refund payable to the individual as

 

provided under section 30a of Act No. 122 of the Public Acts of

 

1941, being section 205.30a of the Michigan Compiled Laws 1941 PA

 

122, MCL 205.30a.

 

     (2) Deduction from benefits payable to the individual shall be

 

is limited to not more than 20% of each weekly benefit check due

 

the claimant. The commission unemployment agency shall not recover

 

improperly paid benefits from an individual more than 3 years, or

 

more than 6 years in the case of a violation of section 54(a) or

 

(b) or sections 54a to 54c, after the date of receipt of the

 

improperly paid benefits unless : (1) the unemployment agency filed

 

a civil action is filed in a court by the commission within the 3-

 

year or 6-year period , (2) or the individual made an intentional

 

false statement, misrepresentation, or concealment of material

 

information to obtain the benefits , or (3) the commission

 

unemployment agency issued a determination requiring restitution

 

within the 3-year or 6-year period. Furthermore, except Except in a

 

case of an intentional false statement, misrepresentation, or

 

concealment of material information, the commission may waive

 

recovery of an improperly paid benefit or interest if the payment

 

was not the fault of the individual and if repayment would be

 

contrary to equity and good conscience.

 

     (3) (b) For benefit years beginning before the conversion date

 

prescribed in section 75 October 1, 2000, if the commission

 

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 all of his or her uncharged credit weeks with

 

respect to the benefit year in which the act occurred canceled as

 

of the date the commission unemployment agency receives notice of,

 

or initiates investigation of, the possible false statement,

 

misrepresentation, or concealment of material information,

 

whichever date is earlier. Before receiving benefits in a benefit

 

year established within 2 years after cancellation of uncharged

 

credit weeks under this subsection, the individual, in addition to

 

making the restitution of benefits established under subsection (a)

 

subsections (1) and (2), may be liable to the commission

 

unemployment agency, by cash, deduction from benefits, or deduction

 

from a tax refund, for an additional amount as determined by the

 

commission unemployment agency under this act. Restitution

 

resulting from the intentional false statement, misrepresentation,

 

or concealment of material information is not subject to the 20%

 

limitation provided in subsection (a) (2). For benefit years

 

beginning after the conversion date prescribed in section 75 on or

 

after October 1, 2000, if the commission 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

 

Senate Bill No. 612 as amended June 25, 2009

 

rights to benefits for the benefit year in which the act occurred

 

canceled as of the date the commission unemployment agency receives

 

notice of, or initiates investigation of, a possible false

 

statement, misrepresentation, or concealment of material

 

information, whichever date is earlier, and wages used to establish

 

that benefit year shall not be used to establish another benefit

 

year. Before receiving benefits in a benefit year established

 

within 2 years after cancellation of rights to benefits under this

 

subsection, the individual, in addition to making the restitution

 

of benefits established under subsection (a) subsections (1) and

 

(2), may be liable to the commission unemployment agency, by cash,

 

deduction from benefits, or deduction from a tax refund, for an

 

additional amount as otherwise determined by the commission

 

unemployment agency under this act. Restitution resulting from the

 

intentional false statement, misrepresentation, or concealment of

 

material information is not subject to the 20% limitation provided

 

in subsection (a) (2).

 

     (4) (c) Any determination made by the commission unemployment

 

agency under this section is final unless an application for a

 

redetermination is filed with the commission unemployment agency in

 

accordance with section 32a.

 

     (5) (d) The commission unemployment agency shall take the

 

action necessary to recover all benefits improperly obtained or

 

paid under this act plus interest, and to enforce all penalties

 

under subsection (b) (3).

 

     (6) Interest recovered under this section shall be deposited

 

in the <<special fraud control>> fund created in section 10. The interest

so

 

Senate Bill No. 612 as amended June 25, 2009

 

deposited shall be expended first to acquire, through a competitive

 

bid process, packaged software that has a proven record of success

 

in detecting and collecting unemployment benefit overpayments,

 

before being applied to other administrative expenses.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 95th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 615.                                   

 

         

 

<<                                                            

 

         

 

     (b)>> Senate Bill No. 614.                                   

 

         

 

     <<(c)>> Senate Bill No. 613.