HOUSE BILL No. 4951

 

May 14, 2009, Introduced by Reps. Roy Schmidt, Slezak, Haugh, Womack and Dean and referred to the Committee on Commerce.

 

     A bill to amend 1936 (Ex Sess) PA 1, entitled

 

"Michigan employment security act,"

 

(MCL 421.1 to 421.75) by adding section 22c.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 22c. (1) Unless there has been a transfer of trade or

 

business in violation of section 22b(1) or a disregard of the

 

separate legal entities through the commingling of bank accounts

 

and other assets and failure to abide by corporate formalities for

 

an unlawful purpose, the unemployment agency shall not consolidate

 

or combine the experience and unemployment accounts of separate

 

employer entities into a single account or assess a consolidated or

 

combined contribution rate covering 2 or more entities. This

 

section does not prohibit the unemployment agency from transferring

 

the experience of an employer entity, or combining the experience

 

of 2 or more employer entities into a single account for coverage


 

after July 1, 2005, if there has been a transfer after July 1, 2005

 

of all or part of a trade or business for the sole or primary

 

purpose of reducing reimbursement payments in lieu of contributions

 

or the contribution rate as described in section 22b or a disregard

 

of the separate legal entities through the commingling of bank

 

accounts and other assets and failure to abide by corporate

 

formalities for an unlawful purpose.

 

     (2) The unemployment agency shall not consolidate or combine

 

the experience or unemployment accounts of employer entities into a

 

single account or assess a consolidated or combined contribution

 

rate while a request for a redetermination under section 32a, an

 

appeal to the board of review under section 33, or an appeal to a

 

circuit or appellate court under section 38 is pending. If the

 

unemployment agency's determination is upheld in a final proceeding

 

or a proceeding from which the time for appeal has expired, the

 

consolidation or combination of the experience account or

 

contribution rate shall be retroactive to the date established in

 

the original determination. If the unemployment agency's

 

consolidation or combination determination is overturned by the

 

board of review or a circuit or appellate court, the board of

 

review or circuit or appellate court shall award the prevailing

 

party its court costs and reasonable attorney fees.