SB-0806, As Passed House, December 14, 2011

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE SUBSTITUTE FOR

 

SENATE BILL NO. 806

 

 

 

 

 

 

 

 

 

 

 

 

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

 

"Michigan employment security act,"

 

by amending sections 6a, 10, 11, 13, 13m, 15, 17, 19, 19a, 20,

 

21, 27, 28, 29, 32a, 32b, 33, 34, 37, 38, 42, 44, 46, 48, 50, 54,

 

62, and 64 (MCL 421.6a, 421.10, 421.11, 421.13, 421.13m, 421.15,

 

421.17, 421.19, 421.19a, 421.20, 421.21, 421.27, 421.28, 421.29,

 

421.32a, 421.32b, 421.33, 421.34, 421.37, 421.38, 421.42, 421.44,

 

421.46, 421.48, 421.50, 421.54, 421.62, and 421.64), section 6a

 

as amended by 1992 PA 204, sections 10, 15, 54, 62, and 64 as

 

amended by 2011 PA 14, sections 11 and 19a as amended by 2009 PA

 

1, section 13 as amended by 1985 PA 197, section 13m as added by

 

2010 PA 383, section 17 as amended by 2009 PA 18, section 19 as

 

amended by 2007 PA 188, section 20 as amended by 2009 PA 20,

 


sections 21, 33, and 34 as amended by 1983 PA 164, section 27 as

 

amended by 2011 PA 216, section 28 as amended by 1994 PA 422,

 

section 29 as amended by 2008 PA 480, sections 32a and 38 as

 

amended by 1996 PA 503, section 32b as added and sections 44 and

 

48 as amended by 2002 PA 192, and sections 46 and 50 as amended

 

by 1995 PA 25, and by adding sections 15a, 42a, and 48a; and to

 

repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 6a. By resolution adopted by a majority of its members,

 

 2  the commission The unemployment insurance agency may destroy or

 

 3  dispose of a document that has been retained in the commission

 

 4  files for not less than 2 years and that in the commission's

 

 5  opinion is of no value to the commission, and may authorize the

 

 6  director to make or cause to be made a reproduction pursuant to

 

 7  the records media act, or a summary or compilation, that he or

 

 8  she considers advisable to preserve the information contained in

 

 9  the document. as soon as practicable after the document has been

 

10  electronically captured and preserved in an information retrieval

 

11  system. Electronically stored records shall be retained for the

 

12  same minimum retention period as required for the original

 

13  record. If an original document is destroyed or disposed of

 

14  pursuant to this section, a reproduction of the document in a

 

15  medium pursuant to the records media act, a reproduction

 

16  consisting of a printout or other output readable by sight from

 

17  such a medium, or a summary or compilation of the document, if

 

18  certified by the director to be a true and accurate official

 

19  reproduction, compilation, or summary of the original

 


 1  reproduction act, 1992 PA 116, MCL 24.401 to 24.406, is

 

 2  admissible in evidence the same as the original in any proceeding

 

 3  before the commission, referee, or appeal board administrative

 

 4  law judge, or Michigan compensation appellate commission and in

 

 5  all courts. Information contained on printouts prepared by

 

 6  automatic data processing equipment is also admissible in

 

 7  evidence, if the original documents from which such information

 

 8  was obtained would have been admissible.

 

 9        Sec. 10. (1) There is created in the department of treasury

 

10  a special fund to be known and designated as the administration

 

11  fund (Michigan employment security act). Any balances in the

 

12  administration fund at the end of any fiscal year of this state

 

13  shall be carried over as a part of the administration fund and

 

14  shall not revert to the general fund of this state. Except as

 

15  otherwise provided in subsection (3), all money deposited into

 

16  the administration fund under this act shall be appropriated by

 

17  the legislature to the unemployment agency to pay the expenses of

 

18  the administration of this act.

 

19        (2) The administration fund shall be credited with all money

 

20  appropriated to the fund by the legislature, all money received

 

21  from the United States or any agency of the United States for

 

22  that purpose, and all money received by this state for the fund.

 

23  All money in the administration fund that is received from the

 

24  federal government or any agency of the federal government or

 

25  that is appropriated by this state for the purposes of this act,

 

26  except money requisitioned from the account of this state in the

 

27  unemployment trust fund pursuant to a specific appropriation made

 


 1  by the legislature in accordance with section 903(c)(2) of title

 

 2  IX of the social security act, 42 USC 1103(c)(2), and with

 

 3  section 17(3)(f), shall be expended solely for the purposes and

 

 4  in the amounts found necessary by the appropriate agency of the

 

 5  United States and the legislature for the proper and efficient

 

 6  administration of this act.

 

 7        (3) All money requisitioned from the account of this state

 

 8  in the unemployment trust fund pursuant to a specific

 

 9  appropriation made by the legislature in accordance with section

 

10  903(c)(2) of title IX of the social security act, 42 USC

 

11  1103(c)(2), and with section 17(3)(f), shall be deposited in the

 

12  administration fund. Any money that remains unexpended at the

 

13  close of the 2-year period beginning on the date of enactment of

 

14  a specific appropriation shall be immediately redeposited with

 

15  the secretary of the treasury of the United States to the credit

 

16  of this state's account in the unemployment trust fund; or any

 

17  money that for any reason cannot be expended or is not to be

 

18  expended for the purpose for which appropriated before the close

 

19  of this 2-year period shall be redeposited at the earliest

 

20  practicable date.

 

21        (4) If any money received after June 30, 1941, from the

 

22  appropriate agency of the United States under title III of the

 

23  social security act, 42 USC 501 to 504, or any unencumbered

 

24  balances in the administration fund (Michigan employment security

 

25  act) as of that date, or any money granted after that date to

 

26  this state under the Wagner-Peyser act, as defined in section 12,

 

27  or any money made available by this state or its political

 


 1  subdivisions and matched by money granted to this state under the

 

 2  Wagner-Peyser act, is found by the appropriate agency of the

 

 3  United States, because of any action or contingency, to have been

 

 4  lost or been expended for purposes other than, or in amounts in

 

 5  excess of, those found necessary by that agency of the United

 

 6  States for the proper administration of this act, the money shall

 

 7  be replaced by money appropriated for that purpose from the

 

 8  general funds of this state to the administration fund (Michigan

 

 9  employment security act) for expenditure as provided in this act.

 

10  Upon receipt of notice of such a finding by the appropriate

 

11  agency of the United States, the commission shall promptly report

 

12  the amount required for replacement to the governor and the

 

13  governor shall, at the earliest opportunity, submit to the

 

14  legislature a request for the appropriation of that amount. This

 

15  subsection shall not be construed to relieve this state of its

 

16  obligation with respect to funds received prior to July 1, 1941,

 

17  under the provisions of 42 USC 501 to 504.

 

18        (5) If any funds expended or disbursed by the commission are

 

19  found by the appropriate agency of the United States to have been

 

20  lost or expended for purposes other than, or in amounts in excess

 

21  of, those found necessary by that agency of the United States for

 

22  the proper administration of this act, and if these funds are

 

23  replaced as provided in subsection (4) by money appropriated for

 

24  that purpose from the general fund of this state, then the

 

25  director who approved the expenditure or disbursement of those

 

26  funds for those purposes or in those amounts, is liable to this

 

27  state in an amount equal to the sum of money appropriated to

 


 1  replace those funds. The director shall be required by the

 

 2  governor to post a proper bond in a sum not less than $25,000.00

 

 3  to cover his or her liability as prescribed in this section, the

 

 4  cost of the bond to be paid from the general fund of this state.

 

 5        (6) There is created in the department of treasury a

 

 6  separate fund to be known as the contingent fund (Michigan

 

 7  employment security act) into which shall be deposited all

 

 8  solvency taxes collected under section 19a and all interest on

 

 9  contributions, penalties, and damages collected under this act.

 

10  Except as otherwise provided in subsections (8) and (9), all

 

11  amounts in the contingent fund (Michigan employment security act)

 

12  and all earnings on those amounts are continuously appropriated

 

13  without regard to fiscal year for the administration of the

 

14  unemployment agency and for the payment of interest on advances

 

15  from the federal government to the unemployment compensation fund

 

16  under 42 USC 1321, to be expended only if authorized by the

 

17  unemployment agency. Money deposited from the solvency taxes

 

18  collected under section 19a shall not be used for the

 

19  administration of the unemployment agency, except for the

 

20  repayment of loans from the state treasury and interest on loans

 

21  made under section 19a(3). However, an authorization or

 

22  expenditure shall not be made as a substitution for a grant of

 

23  federal funds or for any portion of a grant that, in the absence

 

24  of an authorization, would be available to the unemployment

 

25  agency. Immediately upon receipt of administrative grants from

 

26  the appropriate agency of the United States to cover

 

27  administrative costs for which the unemployment agency has

 


 1  authorized and made expenditures from the contingent fund, those

 

 2  grants shall be transferred to the contingent fund to the extent

 

 3  necessary to reimburse the contingent fund for the amount of

 

 4  those expenditures. Amounts needed to refund interest, damages,

 

 5  and penalties erroneously collected shall be withdrawn and

 

 6  expended for those purposes from the contingent fund upon order

 

 7  of the unemployment agency. Any amount authorized to be expended

 

 8  for administration under this section may be transferred to the

 

 9  administration fund. An amount not needed for the purpose for

 

10  which authorized shall, upon order of the unemployment agency, be

 

11  returned to the contingent fund. Amounts needed to refund

 

12  erroneously collected solvency taxes shall be withdrawn and

 

13  expended for that purpose upon order of the unemployment agency.

 

14        (7) There is created in the department of treasury

 

15  contingent fund a separate fund to be known as the special fraud

 

16  control fund (Michigan employment security act). The special

 

17  fraud control fund shall consist of money collected or received

 

18  by the unemployment agency as follows:

 

19        (a) All interest and penalties collected under section 62.

 

20        (b) All gifts to, interest on, or profits earned by the

 

21  special fraud control fund.

 

22        (c) Amounts credited under section 54(k)(ii).

 

23        (8) The money in the special fraud control fund is

 

24  continuously appropriated only to the unemployment agency and may

 

25  not be transferred or otherwise made available to any other state

 

26  agency.

 

27        (9) All amounts in the special fraud control fund are to be

 


 1  used first for the acquisition of packaged software that has a

 

 2  proven record of success with the detection and collection of

 

 3  unemployment benefit overpayments and then for administrative

 

 4  costs associated with the prevention, discovery, and collection

 

 5  of unemployment benefit overpayments, as included in the biennial

 

 6  budget of the unemployment agency and approved by the

 

 7  legislature. The unemployment agency shall submit a report to the

 

 8  clerk of the house of representatives and the secretary of the

 

 9  senate at the close of the 2-year period that begins on the

 

10  effective date of the amendatory act that added this subsection,

 

11  to show how the money from the special fraud control fund was

 

12  used and the results obtained from the special fraud control

 

13  fund. The department shall implement the initial detection and

 

14  collection software package by September 1, 2011.

 

15        (10) At the close of the state fiscal year in 2002 and each

 

16  year after 2002, all funds in the contingent fund (Michigan

 

17  employment security act) in excess of $15,000,000.00 shall lapse

 

18  to the unemployment trust fund.

 

19        Sec. 11. (a) In the administration of this act, the

 

20  commission shall cooperate with the appropriate agency of the

 

21  United States under the social security act. The commission shall

 

22  make reports, in a form and containing information as the

 

23  appropriate agency of the United States may require, and shall

 

24  comply with the provisions that the appropriate agency of the

 

25  United States prescribes to assure the correctness and

 

26  verification of the reports. The commission, subject to this act,

 

27  shall comply with the regulations prescribed by the appropriate

 


 1  agency of the United States relating to the receipt or

 

 2  expenditure of the sums that are allotted and paid to this state

 

 3  for the purpose of assisting in the administration of this act.

 

 4  As used in this section, "social security act" means the social

 

 5  security act, chapter 531, 49 Stat. 620.

 

 6        (b)(1) Information obtained from any employing unit or

 

 7  individual pursuant to the administration of this act and

 

 8  determinations as to the benefit rights of any individual are

 

 9  confidential and shall not be disclosed or open to public

 

10  inspection other than to public employees and public officials in

 

11  the performance of their official duties under this act and to

 

12  agents or contractors of those public officials, including those

 

13  described in subdivision (viii), in any manner that reveals the

 

14  individual's or the employing unit's identity or any identifying

 

15  particular about any individual or any past or present employing

 

16  unit or that could foreseeably be combined with other publicly

 

17  available information to reveal identifying particulars. However,

 

18  all of the following apply:

 

19        (i) Information in the commission's possession that might

 

20  affect a claim for worker's disability compensation under the

 

21  worker's disability compensation act of 1969, 1969 PA 317, MCL

 

22  418.101 to 418.941, shall be available to interested parties as

 

23  defined in R 421.201 of the Michigan administrative code,

 

24  regardless of whether the commission is a party to an action or

 

25  proceeding arising under that act.

 

26        (ii) Any information in the commission's possession that may

 

27  affect a claim for benefits or a charge to an employer's

 


 1  experience account shall be available to interested parties as

 

 2  defined in R 421.201 of the Michigan administrative code, and to

 

 3  their agents, if their agents provide the unemployment insurance

 

 4  agency with a written authorization of representation from the

 

 5  party represented. A written authorization of representation is

 

 6  not required in any of the following circumstances:

 

 7        (A) If the request is made by an attorney who is retained by

 

 8  an interested party and files an appearance for purposes related

 

 9  to a claim for unemployment benefits.

 

10        (B) If the request is made by an elected official performing

 

11  constituent services and the elected official presents reasonable

 

12  evidence that the identified individual authorized the

 

13  disclosure.

 

14        (C) If the request is made by a third party who is not

 

15  acting as an agent for an interested party and the third party

 

16  presents a release from an interested party for the information.

 

17  The release shall be signed by an interested party; specify the

 

18  information to be released and all individuals who may receive

 

19  the information; and state the specific purpose for which the

 

20  information is sought, that files of the state may be accessed to

 

21  obtain the information, and that the information sought will only

 

22  be used for the purpose indicated. The purpose specified in the

 

23  release shall be limited to that of providing a service or

 

24  benefit to the individual signing the release or carrying out

 

25  administration or evaluation of a public program to which the

 

26  release pertains.

 

27        (iii) Except as provided in this act, the information and

 


 1  determinations shall not be used in any action or proceeding

 

 2  before any court or administrative tribunal unless the commission

 

 3  is a party to or a complainant in the action or proceeding, or

 

 4  unless used for the prosecution of fraud, civil proceeding, or

 

 5  other legal proceeding in the programs indicated in subdivision

 

 6  (2).

 

 7        (iv) Any report or statement, written or verbal, made by any

 

 8  person to the commission, any member of the commission, or to any

 

 9  person engaged in administering this act is a privileged

 

10  communication, and a person, firm, or corporation shall not be

 

11  held liable for slander or libel on account of a report or

 

12  statement. The records and reports in the custody of the

 

13  commission shall be available for examination by the employer or

 

14  employee affected.

 

15        (v) Subject to restrictions that the commission prescribes

 

16  by rule, information in the commission's possession may be made

 

17  available to any agency of this state, any other state, or any

 

18  federal agency charged with the administration of an unemployment

 

19  compensation law or the maintenance of a system of public

 

20  employment offices; the bureau of internal revenue of the United

 

21  States department of the treasury; the bureau of the census of

 

22  the economics and statistics administration of the United States

 

23  department of commerce; or the social security administration of

 

24  the United States department of health and human services.

 

25        (vi) Information obtained in connection with the

 

26  administration of the employment service this act may be made

 

27  available to persons or agencies for purposes appropriate to the

 


 1  operation of a public employment service or unemployment

 

 2  compensation program. Subject to restrictions that the commission

 

 3  prescribes by rule, the commission may also make that information

 

 4  available to agencies of other states that are responsible for

 

 5  the administration of public assistance to unemployed workers; ,

 

 6  and to the departments of this state; and to federal, state, and

 

 7  local law enforcement agencies in connection with a criminal

 

 8  investigation involving the health, safety, or welfare of the

 

 9  public. Information so released shall be used only for purposes

 

10  not inconsistent with the purposes of this act. The information

 

11  shall only be released upon assurance by the entity receiving the

 

12  information that it will reimburse the cost of providing the

 

13  information and will not disclose the information except to the

 

14  individual or employer that is the subject of the information, an

 

15  attorney or agent of the individual or employer, or a prosecuting

 

16  authority for or on behalf of the entity receiving the

 

17  information.

 

18        (vii) Upon request, the commission shall furnish to any

 

19  agency of the United States charged with the administration of

 

20  public works or assistance through public employment, and may

 

21  furnish to any state agency similarly charged, the name, address,

 

22  ordinary occupation, and employment status of each recipient of

 

23  benefits and the recipient's rights to further benefits under

 

24  this act.

 

25        (viii) Subject to restrictions the commission prescribes, by

 

26  rule or otherwise, the commission may also make information that

 

27  it obtains available for use in connection with research projects

 


 1  of a public service nature to a college, university, or agency of

 

 2  this state that is acting as a contractor or agent of a public

 

 3  official and conducting research that assists the public official

 

 4  in carrying out the duties of the office. A person associated

 

 5  with those institutions or agencies shall not disclose the

 

 6  information in any manner that would reveal the identity of any

 

 7  individual or employing unit from or concerning whom the

 

 8  information was obtained by the commission. The unemployment

 

 9  insurance agency shall enter into a written, enforceable

 

10  agreement with the public official that holds the official

 

11  responsible for ensuring that the agent or contractor maintains

 

12  the confidentiality of the information. If the agreement is

 

13  violated, the agreement shall be terminated and the public

 

14  official may be subject to penalties equivalent to those that

 

15  apply under section 54(f) to a person associated with a college,

 

16  university, or public agency who discloses confidential

 

17  information.

 

18        (ix) The commission may request the comptroller of the

 

19  currency of the United States to cause an examination of the

 

20  correctness of any return or report of any national banking

 

21  association rendered under this act, and may, in connection with

 

22  the request, transmit the report or return to the comptroller of

 

23  the currency of the United States as provided in section 3305(c)

 

24  of the internal revenue code of 1986, 26 USC 3305(c).

 

25        (2) The commission shall disclose to qualified requesting

 

26  agencies, upon request, with respect to an identified individual,

 

27  information in its records pertaining to the individual's name;

 


 1  social security number; gross wages paid during each quarter; the

 

 2  name, address, and federal and state employer identification

 

 3  number of the individual's employer; any other wage information;

 

 4  whether an individual is receiving, has received, or has applied

 

 5  for unemployment benefits; the amount of unemployment benefits

 

 6  the individual is receiving or is entitled to receive; the

 

 7  individual's current or most recent home address; whether the

 

 8  individual has refused an offer of work and if so a description

 

 9  of the job offered including the terms, conditions, and rate of

 

10  pay; and any other information which the qualified requesting

 

11  agency considers useful in verifying eligibility for, and the

 

12  amount of, benefits. For purposes of this subdivision, "qualified

 

13  requesting agency" means any state or local child support

 

14  enforcement agency responsible for enforcing child support

 

15  obligations under a plan approved under part d of title IV of the

 

16  social security act, 42 USC 651 to 669b; the United States

 

17  department of health and human services for purposes of

 

18  establishing or verifying eligibility or benefit amounts under

 

19  titles II and XVI of the social security act, 42 USC 401 to 434

 

20  and 42 USC 1381 to 1383f; the United States department of

 

21  agriculture for the purposes of determining eligibility for, and

 

22  amount of, benefits under the food stamp program established

 

23  under the food stamp act of 1977, 7 USC 2011 to 2036; and any

 

24  other state or local agency of this or any other state

 

25  responsible for administering the following programs:

 

26        (i) The aid to families with dependent children program under

 

27  part a of title IV of the social security act, 42 USC 601 to 619.

 


 1        (ii) The medicaid program under title XIX of the social

 

 2  security act, 42 USC 1396 to 1396v.

 

 3        (iii) The unemployment compensation program under section 3304

 

 4  of the internal revenue code of 1986, 26 USC 3304.

 

 5        (iv) The food stamp program under the food stamp act of 1977,

 

 6  7 USC 2011 to 2036.

 

 7        (v) Any state program under a plan approved under title I,

 

 8  X, XIV, or XVI of the social security act, 42 USC 301 to 306, 42

 

 9  USC 1201 to 1206, 42 USC 1351 to 1355, and 42 USC 1381 to 1383f.

 

10        (vi) Any program administered under the social welfare act,

 

11  1939 PA 280, MCL 400.1 to 400.119b.

 

12        The information shall be disclosed only if the qualified

 

13  requesting agency has executed an agreement with the commission

 

14  to obtain the information and if the information is requested for

 

15  the purpose of determining the eligibility of applicants for

 

16  benefits, or the type and amount of benefits for which applicants

 

17  are eligible, under any of the programs listed above or under

 

18  title II and XVI of the social security act, 42 USC 401 to 434

 

19  and 42 USC 1381 to 1383f; for establishing and collecting child

 

20  support obligations from, and locating individuals owing such

 

21  obligations that are being enforced under a plan described in

 

22  section 454 of the social security act, 42 USC 654; or for

 

23  investigating or prosecuting alleged fraud under any of these

 

24  programs.

 

25        The commission shall cooperate with the department of human

 

26  services in establishing the computer data matching system

 

27  authorized in section 83 of the social welfare act, 1939 PA 280,

 


 1  MCL 400.83, to transmit the information requested on at least a

 

 2  quarterly basis. The information shall not be released unless the

 

 3  qualified requesting agency agrees to reimburse the commission

 

 4  for the costs incurred in furnishing the information.

 

 5        In addition to the requirements of this section, except as

 

 6  later provided in this subdivision, all other requirements with

 

 7  respect to confidentiality of information obtained in the

 

 8  administration of this act apply to the use of the information by

 

 9  the officers and employees of the qualified requesting agencies,

 

10  and the sanctions imposed under this act for improper disclosure

 

11  of the information apply to those officers and employees. A

 

12  qualified requesting agency may redisclose information only to

 

13  the individual who is the subject of the information, an attorney

 

14  or other duly authorized agent representing the individual if the

 

15  information is needed in connection with a claim for benefits

 

16  against the requesting agency, or any criminal or civil

 

17  prosecuting authority acting for or on behalf of the requesting

 

18  agency.

 

19        The commission is authorized to enter into an agreement with

 

20  any qualified requesting agency for the purposes described in

 

21  this subdivision. The agreement or agreements shall comply with

 

22  all federal laws and regulations applicable to such agreements.

 

23        (3) The commission shall enable the United States department

 

24  of health and human services to obtain prompt access to any wage

 

25  and unemployment benefit claims information, including any

 

26  information that may be useful in locating an absent parent or an

 

27  absent parent's employer, for purposes of section 453 of the

 


 1  social security act, 42 USC 653, in carrying out the child

 

 2  support enforcement program under title IV of the social security

 

 3  act, 42 USC 601 to 679b. Access to the information shall not be

 

 4  provided unless the requesting agency agrees to reimburse the

 

 5  commission for the costs incurred in furnishing the information.

 

 6        (4) Upon request accompanied by presentation of a consent to

 

 7  the release of information signed by an individual, the

 

 8  commission shall disclose to the United States department of

 

 9  housing and urban development, and any state or local public

 

10  housing agency, or an entity contracting with a state or local

 

11  public housing agency to provide public housing, or any other

 

12  agency responsible for verifying an applicant's or participant's

 

13  eligibility for, or level of benefits in, any housing assistance

 

14  program administered by the United States department of housing

 

15  and urban development, the name, address, wage information,

 

16  whether an individual is receiving, has received, or has applied

 

17  for unemployment benefits, and the amount of unemployment

 

18  benefits the individual is receiving or is entitled to receive

 

19  under this act. This information shall be used only to determine

 

20  an individual's eligibility for benefits or the amount of

 

21  benefits to which an individual is entitled under a housing

 

22  assistance program of the United States department of housing and

 

23  urban development. The information shall not be released unless

 

24  the requesting agency agrees to reimburse the commission for the

 

25  costs incurred in furnishing the information. For purposes of

 

26  this subdivision, "public housing agency" means an agency

 

27  described in section 3(b)(6) of the United States housing act of

 


 1  1937, 42 USC 1437a(b)(6).

 

 2        (5) The commission may make available to the department of

 

 3  treasury information collected for the income and eligibility

 

 4  verification system begun on October 1, 1988 for the purpose of

 

 5  detecting potential tax fraud in other areas.

 

 6        (6) A recipient of confidential information under this act

 

 7  shall use the disclosed information only for purposes authorized

 

 8  by law and consistent with an agreement entered into with the

 

 9  unemployment insurance agency. The recipient shall not redisclose

 

10  the information to any other individual or entity without the

 

11  written permission of the unemployment insurance agency.

 

12        (c) The commission may enter into agreements with the

 

13  appropriate agencies of other states or the federal government

 

14  whereby potential rights to benefits accumulated under the

 

15  unemployment compensation laws of other states or of the federal

 

16  government, or both, may constitute the basis for the payment of

 

17  benefits through a single appropriate agency under plans that the

 

18  commission finds will be fair and reasonable to all affected

 

19  interests and will not result in substantial loss to the

 

20  unemployment compensation fund.

 

21        (d)(1) The commission may enter into reciprocal agreements

 

22  with the appropriate agencies of other states or of the federal

 

23  government adjusting the collection and payment of contributions

 

24  by employers with respect to employment not localized within this

 

25  state.

 

26        (2) The commission may enter into reciprocal agreements with

 

27  agencies of other states administering unemployment compensation,

 


 1  whereby contributions paid by an employer to any other state may

 

 2  be received by the other state as an agent acting for and on

 

 3  behalf of this state to the same extent as if the contributions

 

 4  had been paid directly to this state if the payment is remitted

 

 5  to this state. Contributions so received by another state shall

 

 6  be considered contributions, required and paid under this act as

 

 7  of the date the contributions were received by the other state.

 

 8  The commission may collect contributions in a like manner for

 

 9  agencies of other states administering unemployment compensation

 

10  and remit the contributions to the agencies under the terms of

 

11  the reciprocal agreements.

 

12        (e) The commission may make the state's records relating to

 

13  the administration of this act available and may furnish to the

 

14  railroad retirement board or any other state or federal agency

 

15  administering an unemployment compensation law, at the expense of

 

16  that board, state, or agency, copies of the records as the

 

17  railroad retirement board considers necessary for its purpose.

 

18        (f) The commission may cooperate with or enter into

 

19  agreements with any agency of another state or of the United

 

20  States charged with the administration of any unemployment

 

21  insurance or public employment service law.

 

22        The commission may investigate, secure, and transmit

 

23  information, make available services and facilities, and exercise

 

24  other powers provided in this act with respect to the

 

25  administration of this act as it considers necessary or

 

26  appropriate to facilitate the administration of any unemployment

 

27  compensation or public employment service law, and may accept and

 


 1  utilize information, services, and facilities made available to

 

 2  this state by the agency charged with the administration of any

 

 3  other unemployment compensation or public employment service law.

 

 4        On request of an agency that administers an employment

 

 5  security law of another state or foreign government and that has

 

 6  found, in accordance with that law, that a claimant is liable to

 

 7  repay benefits received under that law, the commission may

 

 8  collect the amount of the benefits from the claimant to be

 

 9  refunded to the agency.

 

10        In any case in which under this subsection a claimant is

 

11  liable to repay any amount to the agency of another state or

 

12  foreign government, the amount may be collected by civil action

 

13  in the name of the commission acting as agent for the agency.

 

14  Court costs shall be paid or guaranteed by the agency of that

 

15  state.

 

16        To the extent permissible under the laws and constitution of

 

17  the United States, the commission may enter into or cooperate in

 

18  arrangements whereby facilities and services provided under this

 

19  act and facilities and services provided under the unemployment

 

20  compensation law of Canada may be utilized for the taking of

 

21  claims and the payment of benefits under the unemployment

 

22  compensation law of this state or under a similar law of Canada.

 

23        Any employer who is not a resident of this state and who

 

24  exercises the privilege of having 1 or more individuals perform

 

25  service for him or her within this state, and any resident

 

26  employer who exercises that privilege and thereafter leaves this

 

27  state, is considered to have appointed the secretary of state as

 


 1  his or her agent and attorney for the acceptance of process in

 

 2  any civil action under this act. In instituting the action, the

 

 3  commission shall cause process or notice to be filed with the

 

 4  secretary of state, and the service shall be sufficient and shall

 

 5  be of the same force and validity as if served upon the

 

 6  nonresident or absent employer personally within this state. The

 

 7  commission immediately shall send notice of the service of

 

 8  process or notice, together with a copy thereof, by certified

 

 9  mail, return receipt requested, to the employer at his or her

 

10  last known address. The return receipt, the commission's

 

11  affidavit of compliance with this section, and a copy of the

 

12  notice of service shall be attached to the original of the

 

13  process filed in the court in which the civil action is pending.

 

14        The courts of this state shall recognize and enforce

 

15  liabilities, as provided in this act, for unemployment

 

16  compensation contributions, penalties, and interest imposed by

 

17  other states that extend a like comity to this state.

 

18        The attorney general may commence action in the appropriate

 

19  court of any other state or any other jurisdiction of the United

 

20  States by and in the name of the commission to collect

 

21  unemployment compensation contributions, penalties, and interest

 

22  finally determined, redetermined, or decided under this act to be

 

23  legally due this state. The officials of other states that extend

 

24  a like comity to this state may sue in the courts of this state

 

25  for the collection of unemployment compensation contributions,

 

26  penalties, and interest, the liability for which has been

 

27  similarly established under the laws of the other state or

 


 1  jurisdiction. A certificate by the secretary of another state

 

 2  under the great seal of that state attesting the authority of the

 

 3  official or officials to collect unemployment compensation

 

 4  contributions, penalties, and interest is conclusive evidence of

 

 5  that authority.

 

 6        The attorney general may commence action in this state as

 

 7  agent for or on behalf of any other state to enforce judgments

 

 8  and established liabilities for unemployment compensation taxes

 

 9  or contributions, penalties, and interest due the other state if

 

10  the other state extends a like comity to this state.

 

11        (g) The commission may also enter into reciprocal agreements

 

12  with the appropriate and authorized agencies of other states or

 

13  of the federal government whereby remuneration and services that

 

14  determine entitlement to benefits under the unemployment

 

15  compensation law of another state or of the federal government

 

16  are considered wages and employment for the purposes of sections

 

17  27 and 46, if the other state agency or agency of the federal

 

18  government has agreed to reimburse the fund for that portion of

 

19  benefits paid under this act upon the basis of the remuneration

 

20  and services as the commission finds will be fair and reasonable

 

21  as to all affected interests. A reciprocal agreement may provide

 

22  that wages and employment that determine entitlement to benefits

 

23  under this act are considered wages or services on the basis of

 

24  which unemployment compensation under the law of another state or

 

25  of the federal government is payable; may provide that services

 

26  performed by an individual for a single employing unit for which

 

27  services are customarily performed by the individual in more than

 


 1  1 state are considered services performed entirely within any 1

 

 2  of the states in which any part of the individual's service is

 

 3  performed, in which the individual has his or her residence, or

 

 4  in which the employing unit maintains a place of business, if

 

 5  there is in effect as to those services, an election approved by

 

 6  the agency charged with the administration of the state's

 

 7  unemployment compensation law, under which all the services

 

 8  performed by the individual for the employing unit are considered

 

 9  to be performed entirely within the state; and may provide that

 

10  the commission will reimburse other state or federal agencies

 

11  charged with the administration of unemployment compensation laws

 

12  with such reasonable portion of benefits, paid under the law of

 

13  any other state or of the federal government upon the basis of

 

14  employment and wages, as the commission finds will be fair and

 

15  reasonable as to all affected interests. Reimbursements payable

 

16  under this subsection are considered benefits for the purpose of

 

17  limiting duration of benefits and for the purposes of sections

 

18  20(a) and 26, and the payments shall be charged to the

 

19  contributing employer's experience account for the purposes of

 

20  sections 17, 18, 19, and 20, or the reimbursing employer's

 

21  account under section 13c, 13g, 13i, or 13l, as applicable.

 

22  Benefits paid under a combined wage plan shall be allocated and

 

23  charged to each employer involved in the quarter in which the

 

24  paying state requires reimbursement. Benefits charged to this

 

25  state shall be allocated to each employer of this state who has

 

26  employed the claimant during the base period of the paying state

 

27  in the same ratio that the wages earned by the claimant during

 


 1  the base period of the paying state in the employ of the employer

 

 2  bears to the total amount of wages earned by the claimant in the

 

 3  base period of the paying state in the employ of all employers of

 

 4  the state. The commission is authorized to make to other state or

 

 5  federal agencies and receive from other state or federal agencies

 

 6  reimbursements from or to the fund, in accordance with

 

 7  arrangements made under this section.

 

 8        (h) The commission may enter into any agreement necessary to

 

 9  cooperate with any agency of the United States charged with the

 

10  administration of any program for the payment of primary or

 

11  supplemental benefits to individuals recently discharged from the

 

12  military services of the United States, and to assist in the

 

13  establishing of eligibility and in the payments of benefits under

 

14  those programs, and for those purposes may accept and administer

 

15  funds made available by the federal government and may accept and

 

16  exercise any delegated function under those programs. The

 

17  commission shall not enter into any agreement providing for, or

 

18  exercise any function connected with, the disbursement of the

 

19  state's unemployment trust fund for purposes not authorized by

 

20  this act.

 

21        (i) The commission may enter into agreements with the

 

22  appropriate agency of the United States under which, in

 

23  accordance with the laws of the United States, the commission, as

 

24  agent of the United States or from funds provided by the United

 

25  States, provides for the payment of unemployment compensation or

 

26  unemployment allowances of any kind, including the payment of any

 

27  benefits and allowances that are made available for manpower

 


 1  development, training, retraining, readjustment, and relocation.

 

 2  The commission may receive and disburse funds from the United

 

 3  States or any appropriate agency of the United States in

 

 4  accordance with any such agreements.

 

 5        If the federal enactment providing for unemployment

 

 6  compensation, training allowance, or relocation payments requires

 

 7  joint federal-state financing of such payments, the commission

 

 8  may participate in the programs by using funds appropriated by

 

 9  the legislature to the extent provided by the legislature for

 

10  such programs.

 

11        (j) The commission shall participate in any arrangement that

 

12  provides for the payment of compensation on the basis of

 

13  combining an individual's wages and employment covered under this

 

14  act with his or her wages and employment covered under the

 

15  unemployment compensation laws of other states, if the

 

16  arrangement is approved by the United States secretary of labor

 

17  in consultation with the state unemployment compensation agencies

 

18  as reasonably calculated to assure the prompt and full payment of

 

19  compensation. An arrangement shall include provisions for both of

 

20  the following:

 

21        (i) Applying the base period of a single state law to a claim

 

22  involving the combining of an individual's wages and employment

 

23  covered under 2 or more state unemployment compensation laws.

 

24        (ii) Avoiding the duplicate use of wages and employment as a

 

25  result of the combining.

 

26        (k) In a proceeding before any court, the commission and the

 

27  state shall be represented by the attorney general of this state

 


 1  or attorneys designated by the attorney general. Only the

 

 2  attorney general or other attorneys designated by the attorney

 

 3  general shall act as legal counsel for the commission.

 

 4        Sec. 13. (1) Each employer subject to this act shall pay to

 

 5  the commission unemployment agency a tax in the form of payments

 

 6  in lieu of contributions where the employer is liable for those

 

 7  payments, or tax contributions equal to a standard rate of 2.7%

 

 8  for calendar years before 1985 and 5.4% for calendar year 1985

 

 9  and thereafter, subject to an adjustment in rate of contributions

 

10  as provided in section 19. The contributions shall become due and

 

11  be paid to the commission, unemployment agency, for the

 

12  unemployment compensation fund, by each employer semiannually or

 

13  for shorter periods of not less than 28 days, as the commission

 

14  unemployment agency may by rule prescribe. Contributions due and

 

15  payable from an employer that is liable under this act solely on

 

16  the basis of the payment of wages for domestic service may be

 

17  paid annually on the date specified by the unemployment agency.

 

18  Contributions, and payments in lieu of contributions, shall be

 

19  credited first to penalty; then to interest; and then to

 

20  principal, unpaid and owing in the oldest calendar quarter and

 

21  progressing each quarter to the most recent quarter. An

 

22  employer's contribution shall not be deducted directly or

 

23  indirectly, in whole or in part, from wages of individuals in his

 

24  or her employ. In the payment of contributions, a fractional part

 

25  of a cent shall be disregarded unless it amounts to 1/2 cent or

 

26  more, in which case it shall be increased to 1 cent. A

 

27  contribution payment amount that is not an even dollar amount

 


 1  shall be credited to the account of the employer in an amount

 

 2  equal to the next lower dollar amount if under 50 cents and in an

 

 3  amount equal to the next higher dollar amount if 50 cents or

 

 4  more. The commission unemployment agency may prescribe by rule

 

 5  the details of the computation and payment of contributions.

 

 6  Every employing unit shall file with the commission unemployment

 

 7  agency periodic reports on forms and at a time as the commission

 

 8  shall prescribe the unemployment agency prescribes to disclose

 

 9  liability for contributions under this act. Each employing unit

 

10  shall keep records, including wage and employment records, and

 

11  shall, within prescribed time limits, submit or provide reports,

 

12  including wage and employment reports, to the commission

 

13  unemployment agency or to the employing unit's employees or

 

14  former employees as the commission may by rule prescribe as

 

15  necessary to carry out this act.unemployment agency prescribes by

 

16  rule.

 

17        (2) Beginning with the first quarter of 1986, each employer

 

18  shall file a quarterly wage report with the commission,

 

19  unemployment agency, on forms and at a time as the commission

 

20  shall prescribe, unemployment agency prescribes, which shall

 

21  include for each of the employer's employees the employee's name,

 

22  social security number, gross wages paid during each quarter, and

 

23  the name, address, and federal and state employer identification

 

24  number of the individual's employer. If the unemployment agency

 

25  discovers an error in a report filed timely, the unemployment

 

26  agency shall provide written notification to the employer of the

 

27  error. If the employer provides corrected information within 14

 


 1  days of the notification, the administrative fine provided in

 

 2  section 54 for a late, incomplete, or erroneous report shall not

 

 3  apply. An employer having more than 25 employees on January 1,

 

 4  2013 shall file quarterly reports beginning with the report for

 

 5  the first quarter of 2013 by an electronic method approved by the

 

 6  unemployment agency. An employer having more than 5 but fewer

 

 7  than 26 employees on January 1, 2013 shall file quarterly reports

 

 8  beginning with the report for the first quarter of 2014 by an

 

 9  electronic method approved by the unemployment agency. An

 

10  employer having 5 or fewer employees on January 1, 2013 shall

 

11  file quarterly reports beginning with the report for the first

 

12  quarter of 2015 by an electronic method approved by the

 

13  unemployment agency, except that the director of the unemployment

 

14  agency, upon application by the employer, may grant additional

 

15  time for the employer to comply with the electronic filing method

 

16  if the director concludes that satisfying the requirement of

 

17  electronic filing will cause economic hardship for the employer.

 

18  The employer shall provide, and the director shall consider,

 

19  information about the employer's anticipated cost expenditure for

 

20  preparing for electronic filing and about the employer's annual

 

21  income. An employer that complies with the reporting requirements

 

22  of this subsection by filing electronically a quarterly wage

 

23  report using a method approved by the unemployment agency is not

 

24  required to file periodically to disclose contributions under

 

25  this act.

 

26        (3) The unemployment agency shall allow a contributing

 

27  employer that employed 25 or fewer individuals during the pay

 


 1  period that includes January 12, 2012, or during the

 

 2  corresponding pay period in each succeeding calendar year, and

 

 3  that incurred 50% or more of the employer's total previous year's

 

 4  contribution obligation in the first quarter of that year to

 

 5  discharge the liability for contributions due in the next

 

 6  succeeding year through quarterly payments that distribute the

 

 7  payment of the first quarter's obligation equally over the 4

 

 8  quarters in that year. To avoid interest and penalties otherwise

 

 9  applicable to those payments, an employer meeting the

 

10  requirements of this subsection shall notify the unemployment

 

11  agency of the election to make apportioned payments with the

 

12  first quarter's payment and timely file each succeeding quarterly

 

13  payment in the amounts prescribed in section 15a. This subsection

 

14  applies to contributions beginning in the 2013 tax year.

 

15        Sec. 13m. (1) A professional employer organization that has

 

16  not previously filed shall file a report with the agency in

 

17  accordance with R 421.121 and R 421.190 of the Michigan

 

18  administrative code for a determination of its status as a liable

 

19  employing unit and employer under this act. A PEO determined to

 

20  be a liable employer shall complete an electronic employer

 

21  registration in the manner approved by the agency to register its

 

22  employer liability.

 

23        (2) Except as provided in subdivision (b), a PEO that is a

 

24  liable employer shall use the following method for reporting

 

25  wages and paying unemployment contributions under this act:

 

26        (a) The PEO shall comply with all requirements of this act

 

27  that apply to a contributing employer. The PEO shall file a

 


 1  single quarterly wage report and unemployment contribution report

 

 2  and pay contributions of its client employers based on the

 

 3  account information of each client employer. The unemployment

 

 4  agency shall convert a reimbursing employer to a contributing

 

 5  employer beginning with the calendar quarter in which the

 

 6  employer becomes a client employer of a PEO. The PEO shall file

 

 7  reports required under R 421.121 of the Michigan administrative

 

 8  code and make contribution payments by electronic reporting and

 

 9  payment methods approved by the agency. The PEO shall notify the

 

10  agency within 30 days after any employer becomes its client

 

11  employer and within 30 days after any client employer

 

12  discontinues its association with the PEO. All of the following

 

13  apply to a rate calculation for client employers of the PEO:

 

14        (i) For a client employer that is a contributing employer and

 

15  was a client employer of the PEO on the date that the PEO changed

 

16  to the reporting method provided in this subdivision, the

 

17  following rates apply:

 

18        (A) Except as provided in sub-subparagraphs (B) and (C), if

 

19  the client employer reported no employees or no payroll to the

 

20  agency for 8 12 or more quarters, the client employer's

 

21  unemployment tax rate will be the new employer tax rate.

 

22        (B) If the client employer was a client employer of the PEO

 

23  for less than 8 12 full calendar quarters, the client employer's

 

24  unemployment tax rate will be based on the client employer's

 

25  prior account and experience.

 

26        (C) If the client employer's account has been terminated for

 

27  more than 1 year or if the client employer never previously

 


 1  registered with the agency, the client shall be separately

 

 2  registered using a method approved by the agency within 30 days

 

 3  after the employer becomes a client employer of the PEO. The

 

 4  client employer shall be assigned the new employer unemployment

 

 5  tax rate.

 

 6        (ii) A business entity that is a contributing employer and

 

 7  becomes a client employer of the PEO on or after January 1, 2011

 

 8  shall retain its existing unemployment tax rate or establish a

 

 9  new rate as provided in section 19.

 

10        (b) A PEO that is a liable employer and that was operating

 

11  in this state before January 1, 2011 may elect and use the

 

12  reporting method in subdivision (a) before January 1, 2014, but

 

13  shall report using the method in subdivision (a) on and after

 

14  January 1, 2014.

 

15        (3) A PEO that is a liable employer is the employer for

 

16  purposes of claims management and hearings under this act on

 

17  behalf of the client employer.

 

18        (4) A PEO that reports under subsection (2)(a) shall confirm

 

19  the mailing address of the client employer, which may be stated

 

20  as that of the PEO or of the client employer. The PEO shall

 

21  disclose the business address of the client employer, which shall

 

22  be the physical address of the client employer, to the agency.

 

23        (5) Either the PEO that reports under subsection (2)(a) or

 

24  the PEO's client employers, but not both, shall file a quarterly

 

25  wage detail report electronically, and shall file a quarterly

 

26  contribution payment in a manner approved by the agency. If a

 

27  client entity of a PEO leases some of its employees from the PEO

 


 1  but retains the remainder of its employees, the leased employees

 

 2  shall be reported by the PEO under the client entity's

 

 3  unemployment insurance agency account number and the retained

 

 4  employees shall be reported by the client entity under an agency-

 

 5  assigned subaccount number of the client entity's account number.

 

 6        (6) The agency shall issue a FUTA certification in

 

 7  accordance with the internal revenue code of 1986, 26 USC 1 to

 

 8  9834, and regulations, rulings, instructions, and directives of

 

 9  the internal revenue service.

 

10        (7) The requirements of this section do not preclude the

 

11  agency from enforcing any provision of this act based on any act

 

12  or omission by a PEO that occurred before January 1, 2011.

 

13        (8) As used in this section, "professional employer

 

14  organization" or "PEO" means that term as defined in R

 

15  421.190(1)(d) of the Michigan administrative code.

 

16        Sec. 15. (a) Contributions unpaid on the date on which they

 

17  are due and payable, as prescribed by the commission,

 

18  unemployment agency, and unpaid restitution of benefit

 

19  overpayments shall bear interest at the rate of 1% per month,

 

20  computed on a day-to-day basis for each day the delinquency is

 

21  unpaid, from and after that date until payment plus accrued

 

22  interest is received by the commission unemployment agency.

 

23  Amounts illegally obtained or previously withheld from payment

 

24  and damages that are recovered by the commission under section

 

25  54(a) and (b) and sections 54a to 54c shall bear interest at the

 

26  rate of 1% per month, computed on a day-to-day basis for each day

 

27  the amounts remain unpaid until payment plus accrued interest is

 


 1  received by the commission. The interest on unpaid contributions

 

 2  and on unpaid benefit overpayments, exclusive of penalties, shall

 

 3  not exceed 50% of the amount of contributions due at due date or

 

 4  50% of the amount of restitution owing. Nothing in this act

 

 5  authorizes the assessment or collection of interest on a penalty

 

 6  imposed under this act. Interest and penalties collected pursuant

 

 7  to this section shall be paid into the contingent fund. , except

 

 8  that interest and penalties collected under section 62 shall be

 

 9  paid into the special fraud control fund. The commission

 

10  unemployment agency may cancel any interest and any penalty when

 

11  it is shown that the failure to pay on or before the last day on

 

12  which the tax could have been paid without interest and penalty

 

13  was not the result of negligence, intentional disregard of the

 

14  rules of the commission, unemployment agency, or fraud.

 

15        (b) The commission unemployment agency may make assessments

 

16  against an employer, claimant, employee of the commission,

 

17  unemployment agency, or third party who fails to pay

 

18  contributions, restitution of benefit overpayments, reimbursement

 

19  payments in lieu of contributions, penalties, forfeitures, or

 

20  interest as required by this act. The commission unemployment

 

21  agency shall immediately notify the employer, claimant, employee

 

22  of the commission, unemployment agency, or third party of the

 

23  assessment in writing by first-class mail. An assessment by the

 

24  commission unemployment agency against a claimant, an employee of

 

25  the commission, unemployment agency, or a third party under this

 

26  subsection shall be made only for penalties and interest on those

 

27  penalties for violations of section 54(a) or (b) or sections 54a

 


 1  to 54c. The assessment is a final determination unless the

 

 2  employer, claimant, employee of the commission, unemployment

 

 3  agency, or third party files with the commission unemployment

 

 4  agency an application for a redetermination of the assessment in

 

 5  accordance with section 32a. A review by the commission

 

 6  unemployment agency or an appeal to a referee an administrative

 

 7  law judge or the appeal board Michigan compensation appellate

 

 8  commission on the assessment does not reopen a question

 

 9  concerning an employer's liability for contributions or

 

10  reimbursement payments in lieu of contributions or a claimant's

 

11  entitlement to benefits, unless the claimant or employer was not

 

12  a party to the proceeding or decision where the basis for the

 

13  assessment was determined. An employer may pay an assessment

 

14  under protest and file an action to recover the amount paid as

 

15  provided under subsection (d). Unless an assessment is paid

 

16  within 15 days after it becomes final the commission unemployment

 

17  agency may issue a warrant under its official seal for the

 

18  collection of the assessed amount. The commission unemployment

 

19  agency through its authorized employees, under a warrant issued,

 

20  may place a lien on any bank account of the claimant or employer

 

21  and may levy upon and sell the property of the employer that is

 

22  used in connection with the employer's business, or that is

 

23  subject to a notice to withhold, found within the state, for the

 

24  payment of the amount of the contributions including penalties,

 

25  interests, and the cost of executing the warrant. Property of the

 

26  employer used in connection with the employer's business is not

 

27  exempt from levy under the warrant. Wages subject to a notice to

 


 1  withhold are exempt to the extent the wages are exempt from

 

 2  garnishment under the laws of this state. The warrant shall be

 

 3  returned to the commission unemployment agency together with the

 

 4  money collected under the warrant within the time specified in

 

 5  the warrant which shall not be less than 20 or more than 90 days

 

 6  after the date of the warrant. The commission unemployment agency

 

 7  shall proceed upon the warrant as prescribed by law in respect to

 

 8  executions issued against property upon judgments by a court of

 

 9  record. The state, through the commission unemployment agency or

 

10  some other officer or agent designated by it, may bid for and

 

11  purchase property sold under the provisions of this subsection.

 

12  If an employer, claimant, employee of the commission,

 

13  unemployment agency, or third party, as applicable, is delinquent

 

14  in the payment of a contribution, reimbursement payment in lieu

 

15  of contribution, penalty, forfeiture, or interest provided for in

 

16  this act, the commission unemployment agency may give notice of

 

17  the amount of the delinquency served either personally or by

 

18  mail, to a person or legal entity, including the state and its

 

19  subdivisions, that has in its possession or under its control a

 

20  credit or other intangible property belonging to the employer,

 

21  claimant, employee of the commission, unemployment agency, or

 

22  third party, or who owes a debt to the employer, claimant,

 

23  employee of the commission, unemployment agency, or third party

 

24  at the time of the receipt of the notice. A person or legal

 

25  entity so notified shall not transfer or dispose of the credit,

 

26  other intangible property, or debt without retaining an amount

 

27  sufficient to pay the amount specified in the notice unless the

 


 1  unemployment agency consents to a transfer or disposition or 45

 

 2  days have elapsed from the receipt of the notice. A person or

 

 3  legal entity so notified shall advise the unemployment agency

 

 4  within 5 days after receipt of the notice of a credit, other

 

 5  intangible property, or debt, which is in its possession, under

 

 6  its control, or owed by it. A person or legal entity that is

 

 7  notified and that transfers or disposes of credits or personal

 

 8  property in violation of this section is liable to the

 

 9  unemployment agency for the value of the property or the amount

 

10  of the debts thus transferred or paid, but not more than the

 

11  amount specified in the notice. An amount due a delinquent

 

12  employer, claimant, employee of the unemployment agency, or third

 

13  party subject to a notice to withhold shall be paid to the

 

14  unemployment agency upon service upon the debtor of a warrant

 

15  issued under this section.

 

16        (c) In addition to the mode of collection provided in

 

17  subsection (b), if, after due notice, an employer defaults in

 

18  payment of contributions or interest on the contributions, or a

 

19  claimant, employee of the unemployment agency, or third party

 

20  defaults in the payment of a penalty or interest on a penalty,

 

21  the unemployment agency may bring an action at law in a court of

 

22  competent jurisdiction to collect and recover the amount of a

 

23  contribution, and any interest on the contribution, or the

 

24  penalty or interest on the penalty, and in addition 10% of the

 

25  amount of contributions or penalties found to be due, as damages.

 

26  An employer, claimant, employee of the unemployment agency, or

 

27  third party adjudged in default shall pay costs of the action. An

 


 1  action by the unemployment agency against a claimant, employee of

 

 2  the unemployment agency, or third party under this subsection

 

 3  shall be brought only to recover penalties and interest on those

 

 4  penalties for violations of section 54(a) or (b) or sections 54a

 

 5  to 54c. Civil actions brought under this section shall be heard

 

 6  by the court at the earliest possible date. If a judgment is

 

 7  obtained against an employer for contributions and an execution

 

 8  on that judgment is returned unsatisfied, the employer may be

 

 9  enjoined from operating and doing business in this state until

 

10  the judgment is satisfied. The circuit court of the county in

 

11  which the judgment is docketed or the circuit court for the

 

12  county of Ingham may grant an injunction upon the petition of the

 

13  unemployment agency. A copy of the petition for injunction and a

 

14  notice of when and where the court shall act on the petition

 

15  shall be served on the employer at least 21 days before the court

 

16  may grant the injunction.

 

17        (d) An employer or employing unit improperly charged or

 

18  assessed contributions provided for under this act, or a

 

19  claimant, employee of the unemployment agency, or third party

 

20  improperly assessed a penalty under this act and who paid the

 

21  contributions or penalty under protest within 30 days after the

 

22  mailing of the notice of determination of assessment, may recover

 

23  the amount improperly collected or paid, together with interest,

 

24  in any proper action against the unemployment agency. The circuit

 

25  court of the county in which the employer or employing unit or

 

26  claimant, employee of the unemployment agency, or third party

 

27  resides, or, in the case of an employer or employing unit, in

 


 1  which is located the principal office or place of business of the

 

 2  employer or employing unit, has original jurisdiction of an

 

 3  action to recover contributions improperly paid or collected or a

 

 4  penalty improperly assessed whether or not the charge or

 

 5  assessment has been reviewed by the unemployment agency or heard

 

 6  or reviewed by a referee an administrative law judge or the

 

 7  appeal board Michigan compensation appellate commission. The

 

 8  court has no jurisdiction of the action unless written notice of

 

 9  claim is given to the unemployment agency at least 30 days before

 

10  the institution of the action. In an action to recover

 

11  contributions paid or collected or penalties assessed, the court

 

12  shall allow costs it considers proper. Either party to the action

 

13  has the right of appeal as is now provided by law in other civil

 

14  actions. An action by a claimant, employee of the unemployment

 

15  agency, or third party against the unemployment agency under this

 

16  subsection shall be brought only to recover penalties and

 

17  interest on those penalties improperly assessed by the

 

18  unemployment agency under section 54(a) or (b) or sections 54a to

 

19  54c. If a final judgment is rendered in favor of the plaintiff in

 

20  an action to recover the amount of contributions illegally

 

21  collected or charged, the treasurer of the unemployment agency,

 

22  upon receipt of a certified copy of the final judgment, shall pay

 

23  the amount of contributions illegally collected or charged or

 

24  penalties assessed from the clearing account, and pay interest as

 

25  allowed by the court, in an amount not to exceed the actual

 

26  earnings of the contributions as found to have been illegally

 

27  collected or charged, from the contingent fund.

 


 1        (e) Except for liens and encumbrances recorded before the

 

 2  filing of the notice provided for in this section, all

 

 3  contributions, interest, and penalties payable under this act to

 

 4  the unemployment agency from an employer, claimant, employee of

 

 5  the unemployment agency, or third party that neglects to pay the

 

 6  same when due are a first and prior lien upon all property and

 

 7  rights to property, real and personal, belonging to the employer,

 

 8  claimant, employee of the unemployment agency, or third party.

 

 9  The lien continues until the liability for that amount or a

 

10  judgment arising out of the liability is satisfied or becomes

 

11  unenforceable by reason of lapse of time. The lien attaches to

 

12  the property and rights to property of the employer, claimant,

 

13  employee of the unemployment agency, or third party, whether real

 

14  or personal, from and after the required filing date of the

 

15  report upon which the specific tax is computed. Notice of the

 

16  lien shall be recorded in the office of the register of deeds of

 

17  the county in which the property subject to the lien is situated,

 

18  and the register of deeds shall receive the notice for recording.

 

19  Notice of the lien may also be filed with the secretary of state

 

20  in accordance with the state tax lien registration act, 1968 PA

 

21  203, MCL 211.681 to 211.687. This subsection applies only to

 

22  penalties and interest on those penalties assessed by the

 

23  unemployment agency against a claimant, employee of the

 

24  unemployment agency, or third party for violations of section

 

25  54(a) or (b) or sections 54a to 54c.

 

26        If there is a distribution of an employer's assets pursuant

 

27  to an order of a court under the laws of this state, including a

 


 1  receivership, assignment for benefit of creditors, adjudicated

 

 2  insolvency, composition, or similar proceedings, contributions

 

 3  then or thereafter due shall be paid in full before all other

 

 4  claims except for wages and compensation under the worker's

 

 5  disability compensation act of 1969, 1969 PA 317, MCL 418.101 to

 

 6  418.941. In the distribution of estates of decedents, claims for

 

 7  funeral expenses and expenses of last sickness shall also be

 

 8  entitled to priority.

 

 9        (f) An injunction shall not issue to stay proceedings for

 

10  assessment or collection of contributions, or interest or penalty

 

11  on contributions, levied and required by this act.

 

12        (g) A person or employing unit , that acquires the

 

13  organization, trade, business, or 75% or more of the assets from

 

14  an employing unit, as a successor described in section 41(2), is

 

15  liable for contributions and interest due to the unemployment

 

16  agency from the transferor at the time of the acquisition in an

 

17  amount not to exceed the reasonable value of the organization,

 

18  trade, business, or assets acquired, less the amount of a secured

 

19  interest in the assets owned by the transferee that are entitled

 

20  to priority. The transferor or transferee who has, not less than

 

21  10 days before the acquisition, requested from the unemployment

 

22  agency in writing a statement certifying the status of

 

23  contribution liability of the transferor shall be provided with

 

24  that statement and the transferee is not liable for any amount

 

25  due from the transferor in excess of the amount of liability

 

26  computed as prescribed in this subsection and certified by the

 

27  unemployment agency. At least 2 calendar days not including a

 


 1  Saturday, Sunday, or legal holiday before the acceptance of an

 

 2  offer, the transferor, or the transferor's real estate broker or

 

 3  other agent representing the transferor, shall disclose to the

 

 4  transferee on a form provided by the unemployment agency, the

 

 5  amounts of the transferor's outstanding unemployment tax

 

 6  liability, unreported unemployment tax liability, and the tax

 

 7  payments, tax rates, and cumulative benefit charges for the most

 

 8  recent 5 years, a listing of all individuals currently employed

 

 9  by the transferor, and a listing of all employees separated from

 

10  employment with the transferor in the most recent 12 months. This

 

11  form shall specify any other information the unemployment agency

 

12  determines is required for a transferee to estimate future

 

13  unemployment compensation costs based on the transferor's benefit

 

14  charge and unemployment tax reporting and payment experience.

 

15  Failure of the transferor, or the transferor's real estate broker

 

16  or other agent representing the transferor, to provide accurate

 

17  information required by this subsection is a misdemeanor

 

18  punishable by imprisonment for not more than 90 days, or a fine

 

19  of not more than $2,500.00, or both. In addition, the transferor,

 

20  or the transferor's real estate broker or other agent

 

21  representing the transferor, is liable to the transferee for any

 

22  consequential damages resulting from the failure to comply with

 

23  this subsection. However, the real estate broker or other agent

 

24  is not liable for consequential damages if he or she exercised

 

25  good faith in compliance with the disclosure of information. The

 

26  remedy provided the transferee is not exclusive, and does not

 

27  reduce any other right or remedy against any party provided for

 


 1  in this or any other act. Nothing in this subsection decreases

 

 2  the liability of the transferee as a successor in interest, or

 

 3  prevents the transfer of a rating account balance as provided in

 

 4  this act. The foregoing provisions are in addition to the

 

 5  remedies the unemployment agency has against the transferor.

 

 6        (h) If a part of a deficiency in payment of the employer's

 

 7  contribution to the fund is due to negligence or intentional

 

 8  disregard of unemployment agency rules, but without intention to

 

 9  defraud, 5% of the total amount of the deficiency, in addition to

 

10  the deficiency and all other interest charges and penalties

 

11  provided herein, shall be assessed, collected, and paid in the

 

12  same manner as a deficiency. If a part of a deficiency is

 

13  determined in an action at law to be due to fraud with intent to

 

14  avoid payment of contributions to the fund, then the judgment

 

15  rendered shall include an amount equal to 50% of the total amount

 

16  of the deficiency, in addition to the deficiency and all other

 

17  interest charges and penalties provided herein.

 

18        (i) If an employing unit fails to make a report as

 

19  reasonably required by the rules of the unemployment agency

 

20  pursuant to this act, the unemployment agency may estimate the

 

21  liability of that employing unit from information it obtains and,

 

22  according to that estimate, assess the employing unit for the

 

23  contributions, penalties, and interest due. The unemployment

 

24  agency may act under this subsection only after a default

 

25  continues for 30 days and after the unemployment agency has

 

26  determined that the default of the employing unit is willful.

 

27        (j) An assessment or penalty with respect to contributions

 


 1  unpaid is not effective for any period before the 3 calendar

 

 2  years preceding the date of the assessment.

 

 3        (k) The rights respecting the collection of contributions

 

 4  and the levy of interest and penalties and damages made available

 

 5  to the unemployment agency by this section are additional to

 

 6  other powers and rights vested in the unemployment agency under

 

 7  other provisions of this act. The unemployment agency may

 

 8  exercise any of the collection remedies under this act even

 

 9  though an application for a redetermination or an appeal is

 

10  pending final disposition.

 

11        (l) A person recording a lien under this section shall pay a

 

12  fee of $2.00 for recording a lien and a fee of $2.00 for

 

13  recording a discharge of a lien.

 

14        (m) In addition to the restitution recoupment methods in

 

15  section 62, the unemployment agency may obtain restitution due

 

16  from a claimant as a result of a benefit overpayment that has

 

17  become final by any of the following methods:

 

18        (1) Levy of a bank account belonging to the claimant.

 

19        (2) Entry into a wage assignment with the claimant.

 

20        (3) Issuing an administrative garnishment of the wages of

 

21  the claimant.

 

22        (n) To obtain an administrative garnishment, the

 

23  unemployment agency shall notify the claimant of both of the

 

24  following: the intention to issue an administrative garnishment

 

25  on the claimant's employer and the amount determined to be due

 

26  from the claimant. The notice shall include a demand for

 

27  immediate payment of the amount due, a statement that it is not

 


 1  subject to appeal, and a statement that the claimant may, within

 

 2  30 days of the issuance of the notice, object to the garnishment

 

 3  by providing information to the agency, with supporting

 

 4  documentation, that the claimant does not owe the stated amount

 

 5  of restitution. Not less than 30 days after issuing the notice to

 

 6  the claimant, the unemployment agency shall notify the claimant's

 

 7  employer to withhold from earnings due or to become due from the

 

 8  claimant the amount shown on the notice plus accrued interest.

 

 9  The employer shall comply with the notice to withhold and shall

 

10  continue to withhold each pay period the amount shown on the

 

11  notice plus accrued interest until the garnishment amount plus

 

12  accrued interest has been satisfied and the notice is released by

 

13  the unemployment agency. The unemployment agency's administrative

 

14  garnishment has priority over any subsequent garnishment or wage

 

15  assignment. The amount subject to garnishment for any pay period

 

16  shall be decreased by any other irrevocable and previously

 

17  effective assignment of wages or other garnishment action served

 

18  on the employer before service of the agency's garnishment

 

19  notice. The amount of the agency's garnishment shall not exceed

 

20  25% of the balance. In response to the administrative

 

21  garnishment, the employer shall do all of the following:

 

22        (1) Within 10 calendar days of the date of the agency's

 

23  notice to withhold wages, notify the agency of the amount of any

 

24  irrevocable and previously effective assignment of wages or

 

25  garnishment actions.

 

26        (2) Within 10 days after the end of each pay period in which

 

27  wages are required to be withheld under the administrative

 


 1  garnishment, remit to the agency the amount withheld pursuant to

 

 2  the administrative garnishment.

 

 3        (3) Within 10 days after the date on which the claimant

 

 4  ceases to be employed by the employer, notify the agency.

 

 5        (o) Before payment of a prize of $1,000.00 or more under the

 

 6  McCauley-Traxler-Law-Bowman-McNeeley lottery act, 1972 PA 239,

 

 7  MCL 432.1 to 432.47, the bureau of state lottery shall determine

 

 8  whether a lottery prize winner has a current liability for

 

 9  restitution of unemployment benefits, penalty, or interest,

 

10  assessed by the unemployment insurance agency and the amount of

 

11  the prize owing to the unemployment insurance agency and shall

 

12  remit that amount to the unemployment insurance agency.

 

13        Sec. 15a. (1) The unemployment agency shall not collect

 

14  interest on a contribution obligation that an employer pays

 

15  through apportioned quarterly payments, if the employer meets the

 

16  requirements of section 13(3) and has remitted the following

 

17  amounts or more each quarter by the date established for each

 

18  quarterly filing:

 

19        (a) First quarter - 25% of the total obligation incurred in

 

20  the first quarter.

 

21        (b) Second quarter - the obligation incurred in the second

 

22  quarter plus 25% of the total obligation for the first quarter.

 

23        (c) Third quarter - the obligation incurred in the third

 

24  quarter plus 25% of the total obligation for the first quarter.

 

25        (d) Fourth quarter - the obligation incurred in the fourth

 

26  quarter plus 25% of the total obligation for the first quarter.

 

27        (2) If an employer fails in any quarter to pay in full, by

 


 1  the due date of the tax payment for that quarter, the percentage

 

 2  of the tax deferred from the first quarter as described in

 

 3  subsection (1), the unemployment agency may collect interest at

 

 4  the rate specified in section 15 on the amount of the deferred

 

 5  tax that is due in that quarter and unpaid.

 

 6        Sec. 17. (1) The bureau unemployment agency shall maintain

 

 7  in the unemployment compensation fund a nonchargeable benefits

 

 8  account and a separate experience account for each employer as

 

 9  provided in this section. This act does not give an employer or

 

10  individuals in the employer's service prior claims or rights to

 

11  the amount paid by the employer to the unemployment compensation

 

12  fund. All contributions to that fund shall be pooled and

 

13  available to pay benefits to any individual entitled to the

 

14  benefits under this act, irrespective of the source of the

 

15  contributions.

 

16        (2) The nonchargeable benefits account shall be credited

 

17  with the following:

 

18        (a) All net earnings received on money, property, or

 

19  securities in the fund.

 

20        (b) Any positive balance remaining in the employer's

 

21  experience account as of the second June 30 computation date

 

22  occurring after the employer has ceased to be subject to this act

 

23  or after the employer has elected to change from a contributing

 

24  employer to a reimbursing employer.

 

25        (c) The proceeds of the nonchargeable benefits component of

 

26  employers' contribution rates determined as provided in section

 

27  19(a)(5).

 


 1        (d) All reimbursements received under section 11(c).

 

 2        (e) All amounts that may be paid or advanced by the federal

 

 3  government under section 903 or section 1201 of the social

 

 4  security act, 42 USC 1103 and 1321, to the account of the state

 

 5  in the federal unemployment trust fund.

 

 6        (f) All benefits improperly paid to claimants that have been

 

 7  recovered and that were previously charged to an employer's

 

 8  account.

 

 9        (g) Any benefits forfeited by an individual by application

 

10  of section 62(b).

 

11        (h) The amount of any benefit check, any employer refund

 

12  check, or any claimant restitution refund check, or other payment

 

13  duly issued that has not been presented for payment within 1 year

 

14  after the date of issue.

 

15        (i) Any other unemployment fund income not creditable to the

 

16  experience account of any employer.

 

17        (j) Any negative balance transferred to an employer's new

 

18  experience account pursuant to this section.

 

19        (k) Amounts transferred from the contingent fund under

 

20  section 10.

 

21        (3) The nonchargeable benefits account shall be charged with

 

22  the following:

 

23        (a) Any negative balance remaining in an employer's

 

24  experience account as of the second June 30 computation date

 

25  occurring after the employer has ceased to be subject to this act

 

26  or has elected to change from a contributing employer to a

 

27  reimbursing employer.

 


 1        (b) Refunds of amounts erroneously collected due to the

 

 2  nonchargeable benefits component of an employer's contribution

 

 3  rate.

 

 4        (c) All training benefits paid under section 27(g) not

 

 5  reimbursable by the federal government and based on service with

 

 6  a contributing employer.

 

 7        (d) Any positive balance credited or transferred to an

 

 8  employer's new experience account under this subsection.

 

 9        (e) Repayments to the federal government of amounts advanced

 

10  by it under section 1201 of the social security act, 42 USC 1321,

 

11  to the unemployment compensation fund established by this act.

 

12        (f) The amounts received by the unemployment compensation

 

13  fund under section 903 of the social security act, 42 USC 1103,

 

14  that may be appropriated to the bureau unemployment agency in

 

15  accordance with subsection (8).

 

16        (g) All benefits determined to have been improperly paid to

 

17  claimants that have been credited to employers' accounts in

 

18  accordance with section 20(a).

 

19        (h) The amount of any substitute check or other payment

 

20  issued to replace an uncashed benefit check, employer refund

 

21  check, or claimant restitution refund check, or other payment

 

22  previously credited to this account.

 

23        (i) The amount of any benefit check or other payment issued

 

24  that would be chargeable to the experience account of an employer

 

25  who has ceased to be subject to this act, and who has had a

 

26  balance transferred from the employer's experience account to the

 

27  solvency or nonchargeable benefits account.

 


 1        (j) All benefits that become nonchargeable to an employer

 

 2  under section 29(3) or section 19(b) or (c), 29(1)(a)(ii) or (iii)

 

 3  or (3), or 42a.

 

 4        (k) For benefit years beginning before October 1, 2000, with

 

 5  benefits allocated under section 20(e)(2) for a week of

 

 6  unemployment in which a claimant earns remuneration with a

 

 7  contributing employer that equals or exceeds the amount of

 

 8  benefits allocated to that contributing employer, and for benefit

 

 9  years beginning on or after October 1, 2000, with benefits

 

10  allocated under section 20(e)(3) 20(f) for a week of unemployment

 

11  in which a claimant earns remuneration with a contributing

 

12  employer that equals or exceeds the amount of benefits allocated

 

13  to that contributing employer.

 

14        (l) Benefits that are nonchargeable to an employer's account

 

15  in accordance with section 20(i) or (j).

 

16        (m) Benefits otherwise chargeable to the account of an

 

17  employer when the benefits are payable solely on the basis of

 

18  combining wages paid by a Michigan employer with wages paid by a

 

19  non-Michigan employer under the interstate arrangement for

 

20  combining employment and wages under 20 CFR 616.1 to 616.11.

 

21        (4) All contributions paid by an employer shall be credited

 

22  to the unemployment compensation fund, and, except as otherwise

 

23  provided with respect to the proceeds of the nonchargeable

 

24  benefits component of employers' contribution rates by section

 

25  19(a)(5), to the employer's experience account, as of the date

 

26  when paid. However, those contributions paid during any July

 

27  shall be credited as of the immediately preceding June 30.

 


 1  Additional contributions paid by an employer as the result of a

 

 2  retroactive contribution rate adjustment, solely for the purpose

 

 3  of this subsection, shall be credited to the employer's

 

 4  experience account as if paid when due, if the payment is

 

 5  received within 30 days after the issuance of the initial

 

 6  assessment that results from the contribution rate adjustment and

 

 7  a written request for the application is filed by the employer

 

 8  during this period.

 

 9        (5) If an employer who has ceased to be subject to this act,

 

10  and who has had a positive or negative balance transferred as

 

11  provided in subsection (2) or (3) from the employer's experience

 

12  account to the solvency or nonchargeable benefits account as of

 

13  the second computation date after the employer has ceased to be

 

14  subject to this act, becomes subject to this act again within 6

 

15  years after that computation date, the employer may apply, within

 

16  60 days after the bureau's determination that the employer is

 

17  again subject to this act, to the bureau to have the unemployment

 

18  agency shall transfer the positive or negative balance, adjusted

 

19  by the debits and credits as have been made subsequent to that

 

20  are made after the date of transfer, credited to the employer's

 

21  new experience account. If the application is timely, the bureau

 

22  shall credit the positive balance to the employer's new

 

23  experience account.

 

24        (6) If an employer's status as a reimbursing employer is

 

25  terminated within 6 years after the date the employer's

 

26  experience account as a prior contributing employer was

 

27  transferred to the solvency or nonchargeable benefits account as

 


 1  provided in subsection (2) or (3) and the employer continues to

 

 2  be subject to this act as a contributing employer, any positive

 

 3  or negative balance in the employer's experience account as a

 

 4  prior contributing employer, which was transferred to the

 

 5  solvency or nonchargeable benefits account, shall be transferred

 

 6  to the employer's new experience account. However, an employer

 

 7  who is delinquent with respect to any reimbursement payments in

 

 8  lieu of contributions for which the employer may be liable shall

 

 9  not have a positive balance transferred during the delinquency.

 

10        (7) If a balance is transferred to an employer's new account

 

11  under subsection (5) or (6), the employer shall not be considered

 

12  a "qualified employer" until the employer has again been subject

 

13  to this act for the period set forth in section 19(a)(1).

 

14        (8) All money credited under section 903 of the social

 

15  security act, 42 USC 1103, to the account of the state in the

 

16  federal unemployment trust fund shall immediately be credited by

 

17  the bureau unemployment agency to the fund's nonchargeable

 

18  benefits account. There is authorized to be appropriated to the

 

19  bureau unemployment agency from the money credited to the

 

20  nonchargeable benefits account under this subsection, an amount

 

21  determined to be necessary for the proper and efficient

 

22  administration by the bureau unemployment agency of this act for

 

23  purposes for which federal grants under Title title 3 of the

 

24  social security act, 42 USC 501 to 504, and the Wagner-Peyser

 

25  act, 29 USC 49 to 49l-2, are not available or are insufficient.

 

26  The appropriation shall expire not more than 2 years after the

 

27  date of enactment and shall provide that any unexpended balance

 


 1  shall then be credited to the nonchargeable benefits account. An

 

 2  appropriation shall not be made under this subsection for an

 

 3  amount that exceeds the "adjusted balance" of the nonchargeable

 

 4  benefits account on the most recent computation date.

 

 5  Appropriations made under this subsection shall limit the total

 

 6  amount that may be obligated by the bureau unemployment agency

 

 7  during a fiscal year to an amount that does not exceed the amount

 

 8  by which the aggregate of the amounts credited to the

 

 9  nonchargeable benefits account under this subsection during the

 

10  fiscal year and the 24 preceding fiscal years, exceeds the

 

11  aggregate of the amounts obligated by the bureau unemployment

 

12  agency by appropriation under this subsection and charged against

 

13  the amounts thus credited to the nonchargeable benefits account

 

14  during any of the 25 fiscal years and any amounts credited to the

 

15  nonchargeable benefits account that have been used for the

 

16  payment of benefits.

 

17        Sec. 19. (a) The commission shall determine the contribution

 

18  rate of each contributing employer for each calendar year after

 

19  1977 as follows:

 

20        (1)(i) Except as provided in paragraph (ii), an employer's

 

21  rate shall be calculated as described in table A, A-1, or A-2

 

22  with respect to wages paid by the employer in each calendar year

 

23  for employment. If an employer's coverage is terminated under

 

24  section 24, or at the conclusion of 8 12 or more consecutive

 

25  calendar quarters during which the employer has not had workers

 

26  in covered employment, and if the employer again becomes liable

 

27  for contributions, the employer shall be considered as newly

 


 1  liable for contributions for the purposes of table A or table B

 

 2  of the tables in this subsection. An employer that becomes liable

 

 3  under section 41(2) will not be assigned the new employer rate

 

 4  but instead the employer's most recent prior rate as a

 

 5  predecessor employer will be assigned to its new account.

 

 6        (ii) To provide against the high risk of net loss to the fund

 

 7  in such cases, an employing unit that becomes newly liable for

 

 8  contributions under this act in a calendar year beginning on or

 

 9  after January 1, 1983 in which it employs in "employment", not

 

10  necessarily simultaneously but in any 1 week 2 or more

 

11  individuals in the performance of 1 or more contracts or

 

12  subcontracts for construction in the state of roads, bridges,

 

13  highways, sewers, water mains, utilities, public buildings,

 

14  factories, housing developments, or similar construction

 

15  projects, shall be liable for contributions to that employer's

 

16  account under this act for the first 4 years of operations in

 

17  this state at a rate equal to the average rate paid by employers

 

18  engaged in the construction business as determined by contractor

 

19  type in the manner provided in table B, B-1, or B-2.

 

20        For an employer that was a contributing employer before

 

21  January 1, 2012 and did not convert from a reimbursing to a

 

22  contributing employer on or after January 1, 2012, the following

 

23  tables apply:

 

 

24 ________________________________________________________________

25                            Table A

26 ________________________________________________________________

27      Year of Contribution             Contribution Rate

28           Liability


________________________________________________________________

              1               2.7%

              2               2.7%

              3               1/3 (chargeable benefits

                              component) + 1.8%

              4               2/3 (chargeable benefits

                              component) + 1.0%

         5 and over           (chargeable benefits component) +

                              (account building component) +

10                               (nonchargeable benefits component)

11 ________________________________________________________________

12                            Table B

13 ________________________________________________________________

14      Year of Contribution             Contribution Rate

15           Liability

16 ________________________________________________________________

17               1               average construction contractor

18                               rate as determined by the

19                               commission

20               2               average construction contractor

21                               rate as determined by the

22                               commission

23               3               1/3 (chargeable benefits component)

24                               + 2/3 average construction con-

25                               tractor rate as determined by the

26                               commission

27               4               2/3 (chargeable benefits component)

28                               + 1/3 average construction con-

29                               tractor rate as determined by the

30                               commission

31          5 and over           (chargeable benefits component) +

32                               (account building component) +


                              (nonchargeable benefits component)

 

 

 2        For an employer that becomes a contributing employer on or

 

 3  after January 1, 2012 and before January 1, 2013, the following

 

 4  tables apply:

 

 

________________________________________________________________

                           Table A-1

________________________________________________________________

     Year of Contribution             Contribution Rate

          Liability

10 ________________________________________________________________

11               1               2.7%

12               2               2.7% + 1/3 (chargeable benefits

13                               component)

14               3               2.7% + 2/3 (chargeable benefits

15                               component)

16          4 and over           (chargeable benefits component) +

17                               (account building component) +

18                               (nonchargeable benefits component)

19 ________________________________________________________________

20                            Table B-1

21 ________________________________________________________________

22      Year of Contribution             Contribution Rate

23           Liability

24 ________________________________________________________________

25               1               average construction contractor

26                               rate as determined by the

27                               commission

28               2               average construction contractor

29                               rate as determined by the

30                               commission + 1/3 (chargeable

31                               benefits component)


              3               average construction contractor

                              rate as determined by the

                              commission + 2/3 (chargeable

                              benefits component)

         4 and over           (chargeable benefits component) +

                              (account building component) +

                              (nonchargeable benefits component)

 

 

 8        For an employer that becomes a contributing employer on or

 

 9  after January 1, 2013, the following tables apply:

 

 

10 ________________________________________________________________

11                            Table A-2

12 ________________________________________________________________

13      Year of Contribution             Contribution Rate

14           Liability

15 ________________________________________________________________

16               1               2.7% + 1/3 (chargeable benefits

17                               component)

18               2               2.7% + 2/3 (chargeable benefits

19                               component)

20          3 and over           (chargeable benefits component) +

21                               (account building component) +

22                               (nonchargeable benefits component)

23 ________________________________________________________________

24                            Table B-2

25 ________________________________________________________________

26      Year of Contribution             Contribution Rate

27           Liability

28 ________________________________________________________________

29               1               average construction contractor

30                               rate as determined by the

31                               commission + 1/3 (chargeable

32                               benefits component)


              2               average construction contractor

                              rate as determined by the

                              commission + 2/3 (chargeable

                              benefits component)

         3 and over           (chargeable benefits component) +

                              (account building component) +

                              (nonchargeable benefits component)

 

 

 8        (2) With the exception of employers who are in the first 4

 

 9  consecutive years of liability, each employer's contribution rate

 

10  shall be the sum of the following components, all of which are

 

11  determined as of the computation date: a chargeable benefits

 

12  component determined under subdivision (3), an account building

 

13  component determined under subdivision (4), and a nonchargeable

 

14  benefits component determined under subdivision (5).

 

15        (3)(i) The For calendar years beginning before January 1,

 

16  2012, the chargeable benefits component of an employer's

 

17  contribution rate is the percentage determined by dividing: the

 

18  total amount of benefits charged to the employer's experience

 

19  account within the lesser of 60 consecutive months ending on the

 

20  computation date or the number of consecutive months ending on

 

21  the computation date with respect to which the employer has been

 

22  continuously liable for contributions; by the amount of wages,

 

23  subject to contributions, paid by the employer within the same

 

24  period. If the resulting quotient is not an exact multiple of

 

25  1/10 of 1%, it shall be increased to the next higher multiple of

 

26  1/10 of 1%. For the calendar year 2012, the chargeable benefits

 

27  component of an employer's contribution rate is the percentage

 


 1  determined by dividing: the total amount of benefits charged to

 

 2  the employer's experience account within the lesser of 48

 

 3  consecutive months ending on the computation date or the number

 

 4  of consecutive months ending on the computation date with respect

 

 5  to which the employer has been continuously liable for

 

 6  contributions; by the amount of wages, subject to contributions,

 

 7  paid by the employer within the same period. If the resulting

 

 8  quotient is not an exact multiple of 1/10 of 1%, it shall be

 

 9  increased to the next higher multiple of 1/10 of 1%. For each

 

10  calendar year beginning on or after January 1, 2013, the

 

11  chargeable benefits component of an employer's contribution rate

 

12  is the percentage determined by dividing: the total amount of

 

13  benefits charged to the employer's experience account within the

 

14  lesser of 36 consecutive months ending on the computation date or

 

15  the number of consecutive months ending on the computation date

 

16  with respect to which the employer has been continuously liable

 

17  for contributions; by the amount of wages, subject to

 

18  contributions, paid by the employer within the same period. If

 

19  the resulting quotient is not an exact multiple of 1/10 of 1%, it

 

20  shall be increased to the next higher multiple of 1/10 of 1%.

 

21        (ii) For benefit years established before October 1, 2000,

 

22  the chargeable benefits component shall not exceed 6.0%, unless

 

23  there is a statutory change in the maximum duration of regular

 

24  benefit payments or the statutory ratio of regular benefit

 

25  payments to credit weeks. In the event of a change in the maximum

 

26  duration of regular benefit payments, the maximum chargeable

 

27  benefits component shall increase by the same percentage as the

 


 1  statutory percentage change in the duration of regular benefit

 

 2  payments between computation dates. In the event of an increase

 

 3  in the statutory ratio of regular benefit payments to credit

 

 4  weeks, as described in section 27(d), the maximum chargeable

 

 5  benefits component determined as of the computation dates

 

 6  occurring after the effective date of the increased ratio shall

 

 7  increase by 1/2 the same percentage as the increase in the ratio

 

 8  of regular benefit payments to credit weeks. If the resulting

 

 9  increase is not already an exact multiple of 1/10 of 1%, it shall

 

10  be adjusted to the next higher multiple of 1/10 of 1%. For

 

11  benefit years established after October 1, 2000, the chargeable

 

12  benefits component shall not exceed 6.0%, unless there is a

 

13  statutory change in the maximum duration of regular benefit

 

14  payments or the percentage factor of base period wages, which

 

15  defines maximum duration, as provided in section 27(d). If there

 

16  is a statutory change in the maximum duration of regular benefit

 

17  payments, the maximum chargeable benefits component shall

 

18  increase by the same percentage as the statutory percentage

 

19  change in the duration of regular benefit payments between

 

20  computation dates. If there is an increase in the statutory

 

21  percentage factor of base period wages, as described in section

 

22  27(d), the maximum chargeable benefits component determined as of

 

23  the computation dates occurring after the effective date of the

 

24  increased ratio shall increase by 1/2 the same percentage as the

 

25  increase in the percentage factor of base period wages. If the

 

26  resulting increase is not already an exact multiple of 1/10 of

 

27  1%, it shall be adjusted to the next higher multiple of 1/10 of

 


 1  1%.

 

 2        (4) The account building component of an employer's

 

 3  contribution rate is the percentage arrived at by the following

 

 4  calculations: (i) Multiply the amount of the employer's total

 

 5  payroll for the 12 months ending on the computation date, by the

 

 6  cost criterion; (ii) Subtract the amount of the balance in the

 

 7  employer's experience account as of the computation date from the

 

 8  product determined under (i); and (iii) if the remainder is zero or

 

 9  a negative quantity, the account building component of the

 

10  employer's contribution rate shall be zero; but (iv) if the

 

11  remainder is a positive quantity, the account building component

 

12  of the employer's contribution rate shall be determined by

 

13  dividing that remainder by the employer's total payroll paid

 

14  within the 12 months ending on the computation date. The account

 

15  building component shall not exceed the lesser of 1/4 of the

 

16  percentage calculated or 2%. However, except as otherwise

 

17  provided in this subdivision, the account building component

 

18  shall not exceed the lesser of 1/2 of the percentage calculated

 

19  or 3%, if on the June 30 of the preceding calendar year the

 

20  balance in the unemployment compensation fund was less than 50%

 

21  of an amount equal to the aggregate of all contributing

 

22  employers' annual payrolls, for the 12 months ending March 31,

 

23  times the cost criterion. For calendar years after 1993 and

 

24  before 1996, the account building component shall not exceed the

 

25  lesser of .69 of the percentage calculated, or 3%, if on the June

 

26  30 of the preceding calendar year the balance in the unemployment

 

27  compensation fund was less than 50% of an amount equal to the

 


 1  aggregate of all contributing employers' annual payrolls, for the

 

 2  12 months ending March 31, as defined in section 18(f), times the

 

 3  cost criterion; selected for the computation date under section

 

 4  18(e). If the account building component determined under this

 

 5  subdivision is not an exact multiple of 1/10 of 1%, it shall be

 

 6  adjusted to the next higher multiple of 1/10 of 1%.

 

 7        (5) The nonchargeable benefits component of employers'

 

 8  contribution rates is the percentage arrived at by the following

 

 9  calculations: (i) multiply the aggregate amount of all

 

10  contributing employers' annual payrolls, for the 12 months ending

 

11  March 31, as defined in section 18(f), by the cost criterion

 

12  selected for the computation date under section 18(e); (ii)

 

13  subtract the balance of the unemployment fund on the computation

 

14  date, net of federal advances, from the product determined under

 

15  (i); and (iii) if the remainder is zero or a negative quantity, the

 

16  nonchargeable benefits component of employers' contribution rates

 

17  shall be zero; but (iv) if the remainder is a positive quantity,

 

18  the nonchargeable benefits component of employers' contribution

 

19  rates shall be determined by dividing that remainder by the total

 

20  of wages subject to contributions under this act paid by all

 

21  contributing employers within the 12 months ending on March 31

 

22  and adjusting the quotient, if not an exact multiple of 1/10 of

 

23  1%, to the next higher multiple of 1/10 of 1%. The maximum

 

24  nonchargeable benefits component shall be 1%. However, for

 

25  calendar years after 1993, if there are no benefit charges

 

26  against an employer's account for the 60 months ending as of the

 

27  computation date, or for calendar years after 1995, if the

 


 1  employer's chargeable benefits component is less than 2/10 of 1%,

 

 2  the maximum nonchargeable benefit component shall not exceed 1/2

 

 3  of 1%. For calendar years after 1995, if there are no benefit

 

 4  charges against an employer's account for the 72 months ending as

 

 5  of the computation date, the maximum nonchargeable benefits

 

 6  component shall not exceed 4/10 of 1%. For calendar years after

 

 7  1996, if there are no benefit charges against an employer's

 

 8  account for the 84 months ending as of the computation date, the

 

 9  maximum nonchargeable benefits component shall not exceed 3/10 of

 

10  1%. For calendar years after 1997, if there are no benefit

 

11  charges against an employer's account for the 96 months ending as

 

12  of the computation date, the maximum nonchargeable benefits

 

13  component shall not exceed 2/10 of 1%. For calendar years after

 

14  1998, if there are no benefit charges against an employer's

 

15  account for the 108 months ending as of the computation date, the

 

16  maximum nonchargeable benefits component shall not exceed 1/10 of

 

17  1%. For calendar years after 2002, the maximum nonchargeable

 

18  benefits component shall not exceed 1/10 of 1% if there are no

 

19  benefit charges against an employer's account for the 60 months

 

20  ending as of the computation date; 9/100 of 1% if there are no

 

21  benefit charges against an employer's account for the 72 months

 

22  ending as of the computation date; 8/100 of 1% if there are no

 

23  benefit charges against an employer's account for the 84 months

 

24  ending as of the computation date; 7/100 of 1% if there are no

 

25  benefit charges against an employer's account for the 96 months

 

26  ending as of the computation date; or 6/100 of 1% if there are no

 

27  benefit charges against an employer's account for the 108 months

 


 1  ending as of the computation date. For purposes of determining a

 

 2  nonchargeable benefits component under this subsection, an

 

 3  employer account shall not be considered to have had a charge if

 

 4  claim for benefits is denied or determined to be fraudulent

 

 5  pursuant to section 54 or 54c. An employer with a positive

 

 6  balance in its experience account on the June 30 computation date

 

 7  preceding the calendar year shall receive for that calendar year

 

 8  a credit in an amount equal to 1/2 of the extra federal

 

 9  unemployment tax paid in the preceding calendar year under

 

10  section 3302(c)(2) of the federal unemployment tax act, 26 USC

 

11  3302, because of an outstanding balance of unrepaid advances from

 

12  the federal government to the unemployment compensation fund

 

13  under section 1201 of title XII of the social security act, 42

 

14  USC 1321. However, the credit for any calendar year shall not

 

15  exceed an amount determined by multiplying the employer's

 

16  nonchargeable benefit component for that calendar year times the

 

17  employer's taxable payroll for that year. Contributions paid by

 

18  an employer shall be credited to the employer's experience

 

19  account, in accordance with the provisions of section 17(5),

 

20  without regard to any credit given under this subsection. The

 

21  amount credited to an employer's experience account shall be the

 

22  amount of the employer's tax before deduction of the credit

 

23  provided in this subsection.

 

24        (6) The total of the chargeable benefits and account

 

25  building components of an employer's contribution rate shall not

 

26  exceed by more than 1% in the 1983 calendar year, 1.5% in the

 

27  calendar year 1984, or 2% in the 1985 calendar year the higher of

 


 1  4% or the total of the chargeable benefits and the account

 

 2  building components that applied to the employer during the

 

 3  preceding calendar year. For calendar years after 1985, the total

 

 4  of the chargeable benefits and account building components of the

 

 5  employer's contribution rate shall be computed without regard to

 

 6  the foregoing limitation provided in this subdivision. During a

 

 7  year in which this subdivision limits an employer's contribution

 

 8  rate, the resulting reduction shall be considered to be entirely

 

 9  in the experience component of the employer's contribution rate,

 

10  as defined in section 18(d).

 

11        (7) Unless an employer's contribution rate is 1/10 of 1% for

 

12  calendar years beginning after December 31, 1995, the employer's

 

13  contribution rate shall be reduced by any of the following

 

14  calculation methods that results in the lowest rate:

 

15        (i) The chargeable benefits component, the account building

 

16  component, and the nonchargeable benefits component of the

 

17  contribution rate calculated under this section shall each be

 

18  reduced by 10% and if the resulting quotient is not an exact

 

19  multiple of 1/10 of 1%, that quotient shall be increased to the

 

20  next higher multiple of 1/10 of 1%. The 3 components as increased

 

21  shall then be added together.

 

22        (ii) One-tenth of 1% shall be deducted from the contribution

 

23  rate.

 

24        (iii) The contribution rate shall be reduced by 10% and if the

 

25  resulting quotient is not an exact multiple of 1/10 of 1%, that

 

26  quotient shall be increased to the next higher multiple of 1/10

 

27  of 1%.

 


 1        The contribution rate reduction described in this section

 

 2  applies to employers who have been liable for the payment of

 

 3  contributions in accordance with this act for more than 4

 

 4  consecutive years, if the balance of money in the unemployment

 

 5  compensation fund established under section 26, excluding money

 

 6  borrowed from the federal unemployment trust fund, is equal to or

 

 7  greater than 1.2% of the aggregate amount of all contributing

 

 8  employers' payrolls for the 12-month period ending on the

 

 9  computation date. If the employer's contribution rate is reduced

 

10  by a 1/10 of 1% deduction in accordance with this subdivision,

 

11  the employer's contributions shall be credited to each of the

 

12  components of the contribution rate on a pro rata basis. As used

 

13  in this subdivision:

 

14        (i) "Federal unemployment trust fund" means the fund created

 

15  under section 904 of title IX of the social security act, 42 USC

 

16  1104.

 

17        (ii) "Payroll" means that term as defined in section 18(f).

 

18        (b) An employer previously liable for contributions under

 

19  this act which on or after January 1, 1978 filed a petition for

 

20  arrangement under the bankruptcy act of July 1, 1898, chapter

 

21  541, 30 Stat. 544, or on or after October 1, 1979 filed a

 

22  petition for reorganization under title 11 of the United States

 

23  Code, 11 USC 101 to 1330, pursuant to which a plan of arrangement

 

24  or reorganization for rehabilitation purposes has been confirmed

 

25  by order of the United States bankruptcy court, shall be

 

26  considered as a reorganized employer and shall have a reserve

 

27  fund balance of zero as of the first calendar year immediately

 


 1  following court confirmation of the plan of arrangement or

 

 2  reorganization, but not earlier than the calendar year beginning

 

 3  January 1, 1983, if the employer meets each of the following

 

 4  requirements:

 

 5        (1) An employer whose plan of arrangement or reorganization

 

 6  has been confirmed as of January 1, 1983 shall, within 60 days

 

 7  after January 1, 1983, notify the commission of its intention to

 

 8  elect the status of a reorganized employer. An employer that has

 

 9  not had a plan of arrangement or reorganization confirmed as of

 

10  January 1, 1983 shall, within 60 days after the entry by the

 

11  bankruptcy court of the order of confirmation of the plan of

 

12  arrangement or reorganization, notify the commission of its

 

13  intention to elect the status of a reorganized employer. An

 

14  employer shall not make an election under this subdivision after

 

15  December 31, 1985.

 

16        (2) The employer has paid to the commission all

 

17  contributions previously owed by the employer pursuant to this

 

18  act for all calendar years prior to the calendar year as to which

 

19  the employer elects to begin its status as a reorganized

 

20  employer.

 

21        (3) More than 50% of the employer's total payroll is paid

 

22  for services rendered in this state during the employer's fiscal

 

23  year immediately preceding the date the employer notifies the

 

24  fund administrator of its intention to elect the status of a

 

25  reorganized employer.

 

26        (4) The employer, within 180 days after notifying the

 

27  commission of its intention to elect the status of a reorganized

 


 1  employer, makes a cash payment to the commission, for the

 

 2  unemployment compensation fund, equal to: .20 times the first

 

 3  $2,000,000.00 of the employer's negative balance, .35 times the

 

 4  amount of the employer's negative balance above $2,000,000.00 and

 

 5  up to $5,000,000.00, and .50 times the amount of the negative

 

 6  balance above $5,000,000.00. The total amount determined by the

 

 7  commission shall be based on the employer's negative balance

 

 8  existing as of the end of the calendar month immediately

 

 9  preceding the calendar year in which the employer will begin its

 

10  status as a reorganized employer. If the employer fails to pay

 

11  the amount determined, within 180 days of electing status as a

 

12  reorganized employer, the commission shall reinstate the

 

13  employer's negative balance previously reduced and redetermine

 

14  the employer's rate on the basis of the reinstated negative

 

15  balance. The redetermined rate shall then be used to redetermine

 

16  the employer's quarterly contributions for that calendar year.

 

17  The redetermined contributions shall be subject to the interest

 

18  provisions of section 15 as of the date the redetermined

 

19  quarterly contributions were originally due.

 

20        (5) Except as provided in subdivision (6), the employer

 

21  contribution rates for a reorganized employer beginning with the

 

22  first calendar year of the employer's status as a reorganized

 

23  employer shall be as follows:

 

 

24 ________________________________________________________________

25      Year of Contribution             Contribution Rate

26           Liability

27 ________________________________________________________________

28               1               2.7% of total taxable wages paid


              2               2.7%

              3               2.7%

         4 and over          (chargeable benefits component

                              based upon 3-year experience) plus

                             (account building component based

                              upon 3-year experience) plus

                             (nonchargeable benefits component)

 

 

 8        (6) To provide against the high risk of net loss to the fund

 

 9  in such cases, any reorganized employer that employs in

 

10  "employment", not necessarily simultaneously but in any 1 week 25

 

11  or more individuals in the performance of 1 or more contracts or

 

12  subcontracts for construction in the state of roads, bridges,

 

13  highways, sewers, water mains, utilities, public buildings,

 

14  factories, housing developments, or similar major construction

 

15  projects, shall be liable beginning the first calendar year of

 

16  the employer's status as a reorganized employer for contribution

 

17  rates as follows:

 

 

18 ________________________________________________________________

19      Year of Contribution             Contribution Rate

20           Liability

21 ________________________________________________________________

22               1               average construction contractor

23                               rate as determined by the

24                               commission

25               2               average construction contractor

26                               rate as determined by the

27                               commission

28               3               1/3 (chargeable benefits component)

29                               + 2/3 average construction con-


                              tractor rate as determined by the

                              commission

              4               2/3 (chargeable benefits component)

                              + 1/3 average construction con-

                              tractor rate as determined by the

                              commission

         5 and over           (chargeable benefits component) +

                              (account building component) +

                              (nonchargeable benefits component)

 

 

10        (c) Upon application by an employer to the commission for

 

11  designation as a distressed employer, the commission, within 60

 

12  days after receipt of the application, shall make a determination

 

13  whether the employer meets the conditions set forth in this

 

14  subsection. Upon finding that the conditions are met, the

 

15  commission shall notify the legislature of the determination and

 

16  request legislative acquiescence in the determination. If the

 

17  legislature approves the determination by concurrent resolution,

 

18  the employer shall be considered to be a "distressed employer" as

 

19  of January 1 of the year in which the determination is made. The

 

20  commission shall notify the employer of that determination and

 

21  notify the employer of its contribution rate as a distressed

 

22  employer and the contribution rate that would apply if the

 

23  employer was not a distressed employer. The distressed employer

 

24  shall determine its tax contribution using the 2 rates furnished

 

25  by the commission and shall pay its tax contribution based on the

 

26  lower of the 2 rates. If the determination of distressed employer

 

27  status is made during the calendar year, the employer shall be

 


 1  entitled to a credit on future quarterly installments for any

 

 2  excess contributions paid during that initial calendar year. The

 

 3  employer shall notify the commission of the difference between

 

 4  the amount paid and the amount that would have been paid if the

 

 5  employer were not determined to be a distressed employer and the

 

 6  difference will be owed to the unemployment compensation fund,

 

 7  payable in accordance with this subsection. Cumulative totals of

 

 8  the difference must be reported to the commission with each

 

 9  return required to be filed. The commission may periodically

 

10  determine continued eligibility of an employer under this

 

11  subsection. When the commission makes a determination that an

 

12  employer no longer qualifies as a distressed employer, the

 

13  commission shall notify the employer of that determination. After

 

14  notice by the commission that the employer no longer qualifies as

 

15  a distressed employer, the employer will be liable for

 

16  contributions, beginning with the first quarter occurring after

 

17  receipt of notification of disqualification, on the basis of the

 

18  rate that would apply if the employer was not a distressed

 

19  employer. The contribution rate for a distressed employer shall

 

20  be calculated under the law in effect for the 1982 calendar year

 

21  except that the rate determined shall be reduced by the

 

22  applicable solvency tax rate assessed against the employer under

 

23  section 19a. The distressed employer will pay in 10 equal annual

 

24  installments the amount of the unpaid contributions owed to the

 

25  unemployment compensation fund due to the application of this

 

26  subsection, without interest. Each installment shall be made with

 

27  the fourth quarterly return for the respective year. As used in

 


 1  this subsection, "distressed employer" means an employer whose

 

 2  continued presence in this state is considered essential to the

 

 3  state's economic well-being and who meets the following criteria:

 

 4        (1) The employer's average annual Michigan payroll in the 5

 

 5  previous years exceeded $500,000,000.00.

 

 6        (2) The employer's average quarterly number of employees in

 

 7  Michigan in the 5 previous years exceeded 25,000.

 

 8        (3) The employer's business income as defined in section 3

 

 9  of the single business tax act, 1975 PA 228, MCL 208.3, or

 

10  section 105 of the Michigan business tax act, 2007 PA 36, MCL

 

11  208.1105, as applicable, has resulted in an aggregate loss of

 

12  $1,000,000,000.00 or more during the 5-year period ending in the

 

13  second year prior to the year for which the application is being

 

14  made.

 

15        (4) The employer has received from this state loans totaling

 

16  $50,000,000.00 or more or loan guarantees from the federal

 

17  government in excess of $500,000,000.00, either of which are

 

18  still outstanding.

 

19        (5) Failure to give an employer designation as a distressed

 

20  employer would adversely impair the employer's ability to repay

 

21  the outstanding loans owed to this state or that are guaranteed

 

22  by the federal government.

 

23        (d) An employer may at any time make payments to that

 

24  employer's experience account in the fund in excess of the

 

25  requirements of this section, but these payments, when accepted

 

26  by the commission, shall be irrevocable. A payment made by an

 

27  employer within 30 days after mailing to the employer by the

 


 1  commission of a notice of the adjusted contribution rate of the

 

 2  employer shall be credited to the employer's account as of the

 

 3  computation date for which the adjusted contribution rate was

 

 4  computed, and the employer's contribution rate shall be further

 

 5  adjusted accordingly. However, a payment made more than 120 days

 

 6  after the beginning of a calendar year shall not affect the

 

 7  employer's contribution rate for that year.

 

 8        Sec. 19a. (1) Except for the first 4 consecutive years of

 

 9  liability, a contributing employer is subject to a solvency tax

 

10  for a calendar year after 1982 if the employer's experience

 

11  account has a negative balance on the June 30 preceding that

 

12  calendar year, and if on the June 30 preceding that calendar year

 

13  the balance in the unemployment compensation fund is less than

 

14  the total amount of unrepaid interest bearing advances from the

 

15  federal government to the fund under section 1201 of the social

 

16  security act, 42 USC 1321, or the commission projects that

 

17  interest will be due during the calendar year on federal advances

 

18  and there will be insufficient solvency tax funds in the

 

19  contingent fund to meet the federal interest obligations when due

 

20  or there are outstanding advances from the state treasury from

 

21  the previous year and any interest thereon and there will be

 

22  insufficient solvency tax funds in the contingent fund to repay

 

23  such advances and interest. The solvency tax rate is in addition

 

24  to the employer's contribution rate and is not subject to the

 

25  limiting provisions of section 19(a)(6).

 

26        (2) The solvency tax rate shall be determined for the

 

27  respective calendar years as follows:

 


 1        (a) For the 1983 calendar year, the solvency tax rate shall

 

 2  be 0.5%.

 

 3        (b) For the 1984 calendar year, the solvency tax rate shall

 

 4  be 1%.

 

 5        (c) For the 1985 calendar year, the solvency tax rate shall

 

 6  be calculated in the manner provided in this subdivision. By

 

 7  February 1, 1985, the commission shall estimate the amount of

 

 8  interest due on federal loans during the 1985 calendar year,

 

 9  without regard to any deferral permitted under section 1202(b)(3)

 

10  or (8) of the social security act, 42 USC 1322, the amount of

 

11  funds required for the unemployment insurance automation project

 

12  for the 1985 calendar year, and the amount of deferred solvency

 

13  taxes which cannot be collected because of employer bankruptcies.

 

14  The total of these estimated amounts plus any amounts advanced

 

15  from the state treasury under subsection (3) during the 1984

 

16  calendar year and any interest thereon shall be divided by the

 

17  estimated total taxable payroll for the 1985 calendar year of all

 

18  active employers who had negative balances in their experience

 

19  accounts as of June 30, 1984. Total taxable payroll shall be

 

20  estimated by using the total taxable payroll for those employers

 

21  for the 12-month period ending June 30, 1984 and adjusting this

 

22  figure for any change in the taxable wage limit for the 1985

 

23  calendar year. The solvency tax rate thus calculated for the 1985

 

24  calendar year shall be adjusted to the next highest 1/10 of 1%,

 

25  but shall not exceed 2%.

 

26        (d) For the 1986 calendar year, the solvency tax rate shall

 

27  be calculated in the manner provided in this subdivision. By

 


 1  February 1, 1986, the commission shall estimate the amount of

 

 2  interest due during the 1986 calendar year on federal loans,

 

 3  without regard to any deferral that may be permitted under

 

 4  section 1202(b)(3) or (8) of the social security act, 42 USC

 

 5  1322, the amount of funds required for the unemployment insurance

 

 6  automation project for the 1986 calendar year, and the expected

 

 7  balance on December 31, 1986, if any, of unrepaid interest

 

 8  bearing federal advances. The total of these amounts plus any

 

 9  amounts advanced from the state treasury under subsection (3)

 

10  during the 1985 calendar year and any interest thereon shall be

 

11  divided by the estimated total taxable payroll for the calendar

 

12  year of all active employers who had negative balances in their

 

13  experience accounts as of June 30, 1985. Total taxable payroll

 

14  shall be estimated by using the total taxable payroll for those

 

15  employers for the 12-month period ending on June 30, 1985 and

 

16  adjusting this figure for any change in the taxable wage limit

 

17  for the 1986 calendar year. The quotient shall be adjusted to the

 

18  next highest 1/10 of 1%. If this adjusted percentage is 0.8% or

 

19  less, the employer's solvency tax rate for the 1986 calendar year

 

20  shall be the adjusted percentage calculated. If the adjusted

 

21  percentage is more than 0.8%, the employer's solvency tax rate

 

22  shall be calculated in the same manner as the account building

 

23  component of the employer's contribution rate as determined under

 

24  section 19(a)(4), adjusted to generate aggregate solvency tax

 

25  revenues sufficient to pay the interest due during the year on

 

26  federal loans, to pay for the unemployment insurance automation

 

27  project, to repay the balance of interest bearing loans by

 


 1  December 31, 1986, and to repay amounts advanced from the state

 

 2  treasury during the 1985 calendar year and any interest thereon,

 

 3  but shall not exceed the lesser of 1/4 of the percentage

 

 4  calculated or 2%.

 

 5        (e) For calendar years after 1986, the solvency tax rate

 

 6  shall be calculated as follows:

 

 7        (i) If there is no balance on December 31, 1986, of unrepaid

 

 8  interest bearing federal advances, the solvency tax rate, if any,

 

 9  shall be calculated in the same manner as the account building

 

10  component of the employer's contribution rate as determined under

 

11  section 19(a)(4), but shall not exceed the lesser of 1/4 of the

 

12  percentage calculated or 2%.

 

13        (a) (ii) If there is a balance on December 31, 1986, 2011, of

 

14  unrepaid interest bearing federal advances, the solvency tax rate

 

15  for the 1987 2012 calendar year and for each calendar year

 

16  thereafter shall be calculated in the manner provided in this

 

17  subparagraph subdivision until the balance of the interest

 

18  bearing federal advances on December 31, 1986 2011 has been

 

19  reduced to zero. By February 1 of the calendar year, the

 

20  commission shall calculate the sum of (a) the estimated interest

 

21  due during the calendar on federal loans, without regard to any

 

22  interest deferral which may be that is permitted under section

 

23  1202 of the social security act, 42 USC 1322, (b) the estimated

 

24  amount of funds required for the unemployment insurance

 

25  automation project, (c) the remaining balance on December 31 of

 

26  the preceding year of the December 31, 1986 2011 balance of

 

27  unrepaid interest bearing federal advances, and (d) any amounts

 


 1  advanced from the state treasury under subsection (3) during the

 

 2  preceding year and any interest thereon. on the balance. For

 

 3  purposes of calculating the remaining balance, any loan

 

 4  repayments during the year shall first be applied toward reducing

 

 5  the December 31, 1986 2011 loan balance. The amount so calculated

 

 6  shall be divided by the estimated total taxable payroll for the

 

 7  calendar year of all active employers who had negative balances

 

 8  in their experience accounts as of June 30 of the previous year.

 

 9  Total taxable payroll shall be estimated by using the total

 

10  taxable payroll for such those employers for the 12-month period

 

11  ending June 30 of the previous calendar year and adjusting this

 

12  figure for any change in the taxable wage limit for the calendar

 

13  year. The quotient shall be adjusted to the next 1/10 of 1%. If

 

14  this adjusted percentage is 0.8% or less, an employer's solvency

 

15  tax rate for that calendar year shall be the percentage

 

16  calculated. If the adjusted percentage is more than 0.8%, the

 

17  employer's solvency tax rate shall be calculated in the same

 

18  manner as the account building component of the employer's

 

19  contribution rate as determined under section 19(a)(4), adjusted

 

20  to generate sufficient aggregate solvency tax revenues to pay the

 

21  interest due during the year on federal loans, to pay for the

 

22  unemployment insurance automation project, to repay the remaining

 

23  balance of the December 31, 1986 2011 balance of unrepaid federal

 

24  interest bearing loans, and to repay advances from the state

 

25  treasury and any interest due thereon, but shall not exceed the

 

26  lesser of 1/4 of the percentage calculated or 2%.

 

27        (b) For any calendar year after the first calendar year that

 


 1  the remaining balance of the December 31, 1986 2011 balance of

 

 2  unrepaid interest bearing federal advances has been reduced to

 

 3  zero by December 31 of that year, an employer's solvency tax rate

 

 4  shall be calculated in the same manner as the account building

 

 5  component of the employer's contribution rate as determined under

 

 6  section 19(a)(4), but shall not exceed the lesser of 1/4 of the

 

 7  percentage calculated or 2%.

 

 8        (iii) Notwithstanding subparagraph (i), if there is no

 

 9  interest bearing federal loan balance on December 31, 1986, but

 

10  the state will have interest due during the 1987 calendar year on

 

11  federal advances made prior to January 1, 1987, or the state must

 

12  repay in the 1987 calendar year any advances made from the state

 

13  treasury during the 1986 calendar year, plus any interest

 

14  thereon, the employer's solvency tax rate for the 1987 calendar

 

15  year shall be calculated in the same manner as in subparagraph

 

16  (ii). If there is no federal interest bearing loan balance on

 

17  December 31, 1986, and there will be no federal or state interest

 

18  due during the 1987 calendar year based on advances made prior to

 

19  January 1, 1987, but on June 30, 1986, the balance in the

 

20  unemployment compensation fund was less than the total amount of

 

21  unrepaid interest bearing federal advances, the employer's

 

22  solvency tax rate for the 1987 calendar year shall be zero.

 

23        (3) Solvency taxes shall become due and payable in the

 

24  manner, and at the times, specified for contributions in rules

 

25  promulgated by the commission. However, if the state is permitted

 

26  to defer interest payments due during a calendar year under

 

27  section 1202(b)(3) or (8) of the social security act, 42 USC

 


 1  1322, payment of the solvency tax may likewise be deferred by an

 

 2  employer and paid in installments in a manner prescribed by the

 

 3  commission. If a deferral of interest payment is subsequently

 

 4  disallowed by the United States department of labor, either

 

 5  prospectively or retroactively, amounts of solvency taxes

 

 6  deferred under this section shall become immediately due and

 

 7  payable. Further, if the commission estimates that the solvency

 

 8  taxes to be collected by September 30 of the calendar year will

 

 9  be insufficient to meet the interest obligations due during that

 

10  calendar year, the percentages of amounts of solvency taxes

 

11  deferred in any year shall be reduced by the commission in an

 

12  amount sufficient to meet the interest obligations due in that

 

13  calendar year. Furthermore, if the amount of solvency taxes to be

 

14  collected by the time the federal interest obligations are due in

 

15  any year are insufficient to meet the obligations when due, the

 

16  commission shall recommend to the legislature that it appropriate

 

17  an amount sufficient to meet the interest obligations due. Any

 

18  amount so appropriated and used to pay federal interest

 

19  obligations, and interest due on such state appropriation, if

 

20  any, shall be repaid to the state as soon as possible from the

 

21  solvency tax revenues in the contingent fund.

 

22        (4) Amounts obtained pursuant to this section shall be paid

 

23  into the contingent fund created under section 10 and, except for

 

24  solvency taxes transferred to the unemployment compensation fund

 

25  as provided in this subsection, shall not be credited to the

 

26  employer's experience account. Amounts collected from solvency

 

27  taxes which are transferred to the unemployment compensation fund

 


 1  and used to repay federal advances to the unemployment

 

 2  compensation fund shall be credited to the employers' experience

 

 3  accounts by June 30 of the year following the calendar year in

 

 4  which the transfer occurred. The amount to be credited to an

 

 5  employer's account shall be determined by the commission, but

 

 6  shall reasonably reflect each employer's pro rata share of the

 

 7  amount transferred. Past due payments of the solvency tax shall

 

 8  be subject to the interest, penalty, assessment, and collection

 

 9  provisions of section 15. Interest and penalties collected shall

 

10  be paid into the contingent fund. Adjustments and refunds of

 

11  erroneously collected solvency taxes shall be made in accordance

 

12  with section 16. Solvency tax determinations are appealable under

 

13  the appeal process provided for review and appeal of

 

14  determinations under this act.

 

15        (5) If any provision of this section prevents the state from

 

16  qualifying for any federal interest relief provisions provided

 

17  under section 1202 of the social security act, 42 USC 1322, or

 

18  prevents employers in this state from qualifying for the

 

19  limitation on the reduction of federal unemployment tax act

 

20  credits as provided under section 3302(f) of the federal

 

21  unemployment tax act, 26 USC 3302(f), that provision is invalid

 

22  to the extent necessary to maintain qualification for the

 

23  interest relief provisions and federal unemployment tax credits.

 

24        (6) Notwithstanding any other provision of this section, if

 

25  interest due during a calendar year on federal advances is

 

26  forgiven or postponed under federal law and is no longer due

 

27  during that calendar year, no solvency tax shall be assessed

 


 1  against an employer for that calendar year and any solvency tax

 

 2  already assessed and collected against an employer before the

 

 3  forgiveness or postponement of the interest for that calendar

 

 4  year shall be credited to the employer's experience account.

 

 5        Sec. 20. (a) Benefits paid shall be charged against the

 

 6  employer's account as of the quarter in which the payments are

 

 7  made. If the bureau unemployment agency determines that any

 

 8  benefits charged against an employer's account were improperly

 

 9  paid, an amount equal to the charge based on those benefits shall

 

10  be credited to the employer's account and a corresponding charge

 

11  shall be made to the nonchargeable benefits account as of the

 

12  current period or, in the discretion of the bureau, as of the

 

13  date of the charge. Benefits paid to an individual as a result of

 

14  an employer's failure to provide the unemployment agency with

 

15  separation, employment, and wage data as required by section 32

 

16  shall be considered as benefits properly paid to the extent that

 

17  the benefits are chargeable to the noncomplying employer.

 

18        (b) For benefit years established before October 1, 2000,

 

19  benefits paid to an individual shall be based upon the credit

 

20  weeks earned during the individual's base period and shall be

 

21  charged against the experience accounts of the contributing

 

22  employers or charged to the accounts of the reimbursing employers

 

23  from whom the individual earned credit weeks. If the individual

 

24  earned credit weeks from more than 1 employer, a separate

 

25  determination shall be made of the amount and duration of

 

26  benefits based upon the total credit weeks and wages earned with

 

27  each employer. Benefits paid in accordance with the

 


 1  determinations shall be charged against the experience account of

 

 2  a contributing employer or charged to the account of a

 

 3  reimbursing employer beginning with the most recent employer

 

 4  first and thereafter as necessary against other base period

 

 5  employers in inverse order to that in which the claimant earned

 

 6  his or her last credit week with those employers. If there is any

 

 7  disqualifying act or discharge under section 29(1) with an

 

 8  employer, benefits based upon credit weeks earned from that

 

 9  employer before the disqualifying act or discharge shall be

 

10  charged only after the exhaustion of charges as provided above.

 

11  Benefits based upon those credit weeks shall be charged first

 

12  against the experience account of the contributing employer

 

13  involved or to the account of the reimbursing employer involved

 

14  in the most recent disqualifying act or discharge and thereafter

 

15  as necessary in similar inverse order against other base period

 

16  employers involved in disqualifying acts or discharges. The order

 

17  of charges determined as of the beginning date of a benefit year

 

18  shall remain fixed during the benefit year. For benefit years

 

19  established on or after October 1, 2000, the claimant's full

 

20  weekly benefit rate shall be charged to the account or experience

 

21  account of the claimant's most recent separating employer for

 

22  each of the first 2 weeks of benefits payable to the claimant in

 

23  the benefit year in accordance with the monetary determination

 

24  issued pursuant to section 32. However, if the total sum of wages

 

25  paid by an employer totals $200.00 or less, those wages shall be

 

26  used for purposes of benefit payment, but any benefit charges

 

27  attributable to those wages shall be charged to the nonchargeable

 


 1  benefits account. Thereafter, remaining weeks of benefits payable

 

 2  in the benefit year shall be paid in accordance with the monetary

 

 3  determination and shall be charged proportionally to all base

 

 4  period employers, with the charge to each base period employer

 

 5  being made on the basis of the ratio that total wages paid by the

 

 6  employer in the base period bears to total wages paid by all

 

 7  employers in the base period. However, if the claimant did not

 

 8  perform services for the most recent separating employer or

 

 9  employing entity and receive earnings for performing the services

 

10  of at least the amount a claimant must earn, in the manner

 

11  prescribed in section 29(3), to requalify for benefits following

 

12  a disqualification under section 29(1)(a), (b), (i), or (k) 40

 

13  times the state minimum hourly wage times 7 during the claimant's

 

14  most recent period of employment with the employer or employing

 

15  entity, then all weeks of benefits payable in the benefit year

 

16  shall be charged proportionally to all base period employers,

 

17  with the charge to each base period employer being made on the

 

18  basis of the ratio that total wages paid by the employer in the

 

19  base period bears to total wages paid by all employers in the

 

20  base period. If the claimant performed services for the most

 

21  recent separating employing entity and received earnings for

 

22  performing the services of at least the amount a claimant must

 

23  earn, in the manner prescribed in section 29(3), to requalify for

 

24  benefits following a disqualification under section 29(1)(a),

 

25  (b), (i), or (k) 40 times the state minimum hourly wage times 7

 

26  during the claimant's most recent period of employment for the

 

27  employing entity but the separating employing entity was not a

 


 1  liable employer, the first 2 weeks of benefits payable to the

 

 2  claimant shall be charged proportionally to all base period

 

 3  employers, with the charge to each base period employer made on

 

 4  the basis of the ratio that total wages paid by the employer in

 

 5  the base period bears to total wages paid by all employers in the

 

 6  base period. The "separating employer" is the employer that

 

 7  caused the individual to be unemployed as defined in section 48.

 

 8        (c) For benefit years established before October 1, 2000,

 

 9  and except as otherwise provided in section 11(d) or (g) or

 

10  section 46a, the charges for regular benefits to any reimbursing

 

11  employer or to any contributing employer's experience account

 

12  shall not exceed the weekly benefit rate multiplied by 3/4 the

 

13  number of credit weeks earned by the individual during his or her

 

14  base period from that employer. If the resultant product is not

 

15  an even multiple of 1/2 the weekly benefit rate, the amount shall

 

16  be raised to an amount equal to the next higher multiple of 1/2

 

17  the weekly benefit rate, and in the case of an individual who was

 

18  employed by only 1 employer in his or her base period and who

 

19  earned 34 credit weeks with that employer, the product shall be

 

20  raised to the next higher multiple of the weekly benefit rate.

 

21        (d) For benefit years beginning on or after October 1, 2000,

 

22  and except as otherwise provided in section 11(d) or (g) or

 

23  section 46, the charges for regular benefits to any reimbursing

 

24  employer's account or to any contributing employer's experience

 

25  account shall not exceed either the amount derived by multiplying

 

26  by 2 the weekly benefit rate chargeable to the employer in

 

27  accordance with subsection (b) if the employer is the separating

 


 1  employer and is chargeable for the first 2 weeks of benefits, or

 

 2  the amount derived from the percentage of the weekly benefit rate

 

 3  chargeable to the employer in accordance with subsection (b),

 

 4  multiplied by the number of weeks of benefits chargeable to base

 

 5  period employers based on base period wages, to which the

 

 6  individual is entitled as provided in section 27(d), if the

 

 7  employer is a base period employer, or both of these amounts if

 

 8  the employer was both the chargeable separating employer and a

 

 9  base period employer.

 

10        (e) For benefit years beginning before October 1, 2000:

 

11        (1) If an individual has multiemployer credit weeks in his

 

12  or her base period, and if it becomes necessary to use those

 

13  credit weeks as a basis for benefit payments, a single

 

14  determination shall be made of the individual's weekly benefit

 

15  rate and maximum amount of benefits based on the individual's

 

16  multiemployer credit weeks and the wages earned in those credit

 

17  weeks. Each employer involved in the individual's multiemployer

 

18  credit weeks shall be an interested party to the determination.

 

19  The proviso in section 29(2) does not apply to multiemployer

 

20  credit weeks, nor does the reduction provision of section 29(4)

 

21  apply to benefit entitlement based upon those credit weeks.

 

22        (2) The charge for benefits based on multiemployer credit

 

23  weeks shall be allocated to each employer involved on the basis

 

24  of the ratio that the total wages earned during the total

 

25  multiemployer credit weeks counted under section 50(b) with the

 

26  employer bears to the total amount of wages earned during the

 

27  total multiemployer credit weeks counted under section 50(b) with

 


 1  all such employers, computed to the nearest cent. However, if an

 

 2  adjusted weekly benefit rate is determined in accordance with

 

 3  section 27(f), the charge to the employer who has contributed to

 

 4  the financing of the retirement plan shall be reduced by the same

 

 5  amount by which the weekly benefit rate was adjusted under

 

 6  section 27(f). Benefits for a week of unemployment allocated

 

 7  under this subsection to a contributing employer shall be charged

 

 8  to the nonchargeable benefits account if the claimant during that

 

 9  week earns remuneration with that employer that equals or exceeds

 

10  the amount of benefits allocated to that employer.

 

11        (3) Benefits paid in accordance with the determination based

 

12  on multiemployer credit weeks shall be allocated to each employer

 

13  involved and charged as of the quarter in which the payments are

 

14  made. Notice of charges made under this subsection shall be given

 

15  to each employer by means of a current listing of charges, at

 

16  least weekly, or of a quarterly statement of charges. The listing

 

17  or statement shall specify the weeks for which benefits were paid

 

18  based on multiemployer credit weeks and the amount of benefits

 

19  paid chargeable to that employer for each week. The notice shall

 

20  be considered to satisfy the requirements of sections 21(a) and

 

21  32(d) that notification be given each employer of benefits

 

22  charged against that employer's account by means of a copy or

 

23  listing of the benefit check payment, and all protest and appeal

 

24  rights applicable to benefit check copies or payment listings

 

25  shall also apply to the notice of charges. If an employer

 

26  receives both a current listing of charges and a quarterly

 

27  statement of charges under this subsection, all protest and

 


 1  appeal rights shall only apply to the first notice given.

 

 2        (f) For benefit years beginning on or after October 1, 2000

 

 3  , if benefits for a week of unemployment are charged to 2 or more

 

 4  base period employers, the share of the benefits allocated and

 

 5  charged under this section to a contributing employer shall be

 

 6  charged to the nonchargeable benefits account if the claimant

 

 7  during that week earns remuneration with that employer that

 

 8  equals or exceeds the amount of benefits charged to that

 

 9  employer.and before January 1, 2014, if a base period

 

10  contributing employer notifies the unemployment agency that it

 

11  paid gross wages to a claimant in a week at least equal to the

 

12  employer's benefit charge for that claimant for the week, then

 

13  the unemployment agency shall issue a monetary redetermination

 

14  noncharging the account of the employer for that week and for the

 

15  remaining weeks of the benefit year for benefits payable to the

 

16  claimant that would otherwise be charged to the employer's

 

17  account. For benefit years beginning on or after January 1, 2014,

 

18  benefits payable to an individual for a week and for each

 

19  remaining payable week in the benefit year shall be charged to

 

20  the nonchargeable benefits account if either of the following

 

21  occurs:

 

22        (1) The individual reports gross earnings in the week with a

 

23  contributing base period employer at least equal to the

 

24  employer's benefit charges for that individual for the week.

 

25        (2) A contributing base period employer timely protests a

 

26  determination charging benefits to its account for a week in

 

27  which the employer paid gross wages to an individual at least

 


 1  equal to the employer's charges for benefits paid to that

 

 2  individual for that week.

 

 3        (g) For benefit years beginning before October 1, 2000:

 

 4        (1) Training benefits as provided in section 27(g), and

 

 5  extended benefits as provided in section 64, shall be allocated

 

 6  to each reimbursing employer involved in the individual's base

 

 7  period of the claim to which the benefits are related, on the

 

 8  basis of the ratio that the total wages earned during the total

 

 9  credit weeks counted under section 50(b) with a reimbursing

 

10  employer bears to the total amount of wages earned during the

 

11  total credit weeks counted under section 50(b) with all

 

12  employers.

 

13        (2) Training benefits and extended benefits, to the extent

 

14  that they are not reimbursable by the federal government and have

 

15  been allocated to a reimbursing employer, shall be charged to

 

16  that reimbursing employer. A contributing employer's experience

 

17  account shall not be charged with training benefits. Training

 

18  benefits based on service with a contributing employer, to the

 

19  extent that they are not reimbursable by the federal government,

 

20  shall be charged to the nonchargeable benefits account. Extended

 

21  benefits paid and based on service with a contributing employer,

 

22  to the extent that they are not reimbursable by the federal

 

23  government, shall be charged to that employer's experience

 

24  account.

 

25        (3) If the training benefits or extended benefits are

 

26  chargeable only to a single reimbursing employer, the benefits

 

27  shall be charged in accordance with subsection (a). If the

 


 1  training benefits or extended benefits are chargeable to more

 

 2  than 1 reimbursing employer, or to 1 or more reimbursing

 

 3  employers and the nonchargeable benefits account, the benefits

 

 4  shall be charged as of the quarter in which the payments are

 

 5  made.

 

 6        (4) Notice of charges made under this subsection shall be

 

 7  given to each employer by means of a current listing of charges,

 

 8  at least weekly, and subsequently by a quarterly summary

 

 9  statement of charges. The listing shall specify the name and

 

10  social security number of each claimant paid benefits during the

 

11  week, the weeks for which the benefits were paid, and the amount

 

12  of benefits chargeable to that employer paid for each week. The

 

13  quarterly statement of charges shall list each claimant by name

 

14  and social security number and shall show total benefit payments

 

15  chargeable to that employer and made to each claimant during the

 

16  calendar quarter. The listing shall be considered to satisfy the

 

17  requirements of sections 21(a) and 32(d) that notification be

 

18  given each employer of benefits charged against that employer's

 

19  account by means of a listing of the benefit check. payment. All

 

20  protest and appeal rights applicable to benefit check payment

 

21  listings shall also apply to the notice of charges. If an

 

22  employer receives both a current listing of charges and a

 

23  quarterly statement of charges under this subsection, all protest

 

24  and appeal rights shall only apply to the first notice given.

 

25        (h) For benefit years beginning on or after October 1, 2000:

 

26        (1) Training benefits as provided in section 27(g), and

 

27  extended benefits as provided in section 64, shall be charged to

 


 1  each reimbursing employer in the base period of the claim to

 

 2  which the benefits are related, on the basis of the ratio that

 

 3  the total wages paid by a reimbursing employer during the base

 

 4  period bears to the total wages paid by all reimbursing employers

 

 5  in the base period.

 

 6        (2) Training benefits, and extended benefits to the extent

 

 7  they are not reimbursable by the federal government and have been

 

 8  allocated to a reimbursing employer, shall be charged to that

 

 9  reimbursing employer. A contributing employer's experience

 

10  account shall not be charged with training benefits. Training

 

11  benefits based on service with a contributing employer, to the

 

12  extent they are not reimbursable by the federal government, shall

 

13  be charged to the nonchargeable benefits account. Extended

 

14  benefits paid and based on service with a contributing employer,

 

15  to the extent they are not reimbursable by the federal

 

16  government, shall be charged to that employer's experience

 

17  account.

 

18        (3) If the training benefits or extended benefits are

 

19  chargeable only to a single reimbursing employer, the benefits

 

20  shall be charged in accordance with subsection (a). If the

 

21  training benefits or extended benefits are chargeable to more

 

22  than 1 reimbursing employer, or to 1 or more reimbursing

 

23  employers and the nonchargeable benefits account, the benefits

 

24  shall be charged as of the quarter in which the payments are

 

25  made.

 

26        (4) Notice of charges made under this subsection shall be

 

27  given to each employer by means of a current listing of charges,

 


 1  at least weekly, and subsequently by a quarterly summary

 

 2  statement of charges. The listing shall specify the name and

 

 3  social security number of each claimant paid benefits in the

 

 4  week, the weeks for which the benefits were paid, and the amount

 

 5  of benefits chargeable to that employer paid for each week. The

 

 6  quarterly summary statement of charges shall list each claimant

 

 7  by name and social security number and shall show total benefit

 

 8  payments chargeable to that employer and made to each claimant

 

 9  during the calendar quarter. The listing shall be considered to

 

10  satisfy the requirements of sections 21(a) and 32(d) that

 

11  notification be given to each employer of benefits charged

 

12  against that employer's account by means of a listing of the

 

13  benefit check payment. All protest and appeal rights applicable

 

14  to benefit check payment listings shall also apply to the notice

 

15  of charges. If an employer receives both a current listing of

 

16  charges and a quarterly summary statement of charges under this

 

17  subsection, all protest and appeal rights shall only apply to the

 

18  first notice given.

 

19        (i) If a benefit year is established on or after October 1,

 

20  2000, the portion of benefits paid in that benefit year that are

 

21  based on wages used to establish the immediately preceding

 

22  benefit year that began before October 1, 2000 shall not be

 

23  charged to the employer or employers who paid those wages but

 

24  shall be charged instead to the nonchargeable benefits account.

 

25        (j) For benefits years beginning after March 30, 2009,

 

26  benefits paid to a person who leaves employment to accompany a

 

27  spouse who is a full-time member of the United States armed

 


 1  forces and is reassigned for military service in a different

 

 2  geographic location are not chargeable to the employer, but shall

 

 3  be charged to the nonchargeable benefits account.

 

 4        Sec. 21. (a) The commission shall currently provide each

 

 5  employer with copies or listings of the benefit checks charged

 

 6  against that employer's account. An employer determined by the

 

 7  agency to be a successor employer shall begin receiving the

 

 8  listings effective for weeks beginning after the mailing of the

 

 9  determination of successorship. The copies or listings shall show

 

10  the name and social security account number of the payee, the

 

11  amount paid, the date of issuance, the week of unemployment for

 

12  which the check was issued, the name or account number of the

 

13  chargeable employer, upon request a code designation of the place

 

14  of employment by the chargeable employer, and additional

 

15  information as may be deemed pertinent. The copies or listings

 

16  shall constitute a determination of the charge to the employer's

 

17  account. The determination shall be final unless further

 

18  proceedings are taken in accordance with section 32a.

 

19        The commission shall furnish at least quarterly, to each

 

20  employer, a statement summarizing the total of the benefits

 

21  charged against the employer's account during the period. If the

 

22  employer requests, the summary shall be broken down by places of

 

23  employment.

 

24        The commission shall notify each employer, not later than 6

 

25  months after the computation date, of his rate of contributions

 

26  as determined for any calendar year pursuant to section 19. The

 

27  statement or determination shall be final unless further

 


 1  proceedings are taken in accordance with section 32a. However, on

 

 2  request an employer shall be given an extension of 30 days'

 

 3  additional time in which to apply for the review and

 

 4  redetermination.

 

 5        (b) An employer who is not in agreement with a

 

 6  redetermination of the amount of insured payrolls used in

 

 7  computing the employer's experience account percentage, or the

 

 8  computation of the amount of benefits charged or contributions

 

 9  credited to the experience account, or the computation of the

 

10  adjusted contribution rate issued under section 32a may, within

 

11  30 days after mailing of the notice of redetermination, file an

 

12  appeal and request a hearing on the issue before a referee.an

 

13  administrative law judge.

 

14        (c) A contribution becoming due and payable while a rate

 

15  determination is under review or protest may be paid at the rate

 

16  assessed by the commission for the previous year, but it shall be

 

17  adjusted by the commission when the proper rate is determined. If

 

18  an adjustment requires an additional payment from an employer,

 

19  the additional payment shall be considered as a delinquent

 

20  contribution as provided by section 15(a).

 

21        Sec. 27. (a)(1) When a determination, redetermination, or

 

22  decision is made that benefits are due an unemployed individual,

 

23  the benefits shall become payable from the fund and continue to

 

24  be payable to the unemployed individual, subject to the

 

25  limitations imposed by the individual's monetary entitlement, if

 

26  the individual continues to be unemployed and to file claims for

 

27  benefits, until the determination, redetermination, or decision

 


 1  is reversed, a determination, redetermination, or decision on a

 

 2  new issue holding the individual disqualified or ineligible is

 

 3  made, or, for benefit years beginning before October 1, 2000, a

 

 4  new separation issue arises resulting from subsequent work.

 

 5        (2) Benefits shall be paid in person or by mail through

 

 6  Employment offices in accordance with rules promulgated by the

 

 7  commission.

 

 8        (b)(1) Subject to subsection (f), the weekly benefit rate

 

 9  for an individual, with respect to benefit years beginning before

 

10  October 1, 2000, shall be 67% of the individual's average after

 

11  tax weekly wage, except that the individual's maximum weekly

 

12  benefit rate shall not exceed $300.00. However, with respect to

 

13  benefit years beginning on or after October 1, 2000, the

 

14  individual's weekly benefit rate is 4.1% of the individual's

 

15  wages paid in the calendar quarter of the base period in which

 

16  the individual was paid the highest total wages, plus $6.00 for

 

17  each dependent as defined in subdivision (4), up to a maximum of

 

18  5 dependents, claimed by the individual at the time the

 

19  individual files a new claim for benefits, except that the

 

20  individual's maximum weekly benefit rate shall not exceed $300.00

 

21  before April 26, 2002 and $362.00 for claims filed on and after

 

22  April 26, 2002. The weekly benefit rate for an individual

 

23  claiming benefits on and after April 26, 2002 shall be

 

24  recalculated subject to the $362.00 maximum weekly benefit rate.

 

25  The unemployment agency shall establish the procedures necessary

 

26  to verify the number of dependents claimed. If a person

 

27  fraudulently claims a dependent, that person is subject to the

 


 1  penalties set forth in sections 54 and 54c. For benefit years

 

 2  beginning on or after October 2, 1983, the weekly benefit rate

 

 3  shall be adjusted to the next lower multiple of $1.00.

 

 4        (2) For benefit years beginning before October 1, 2000, the

 

 5  state average weekly wage for a calendar year shall be computed

 

 6  on the basis of the 12 months ending the June 30 immediately

 

 7  before that calendar year. The commission shall prepare a table

 

 8  of weekly benefit rates based on an "average after tax weekly

 

 9  wage" calculated by subtracting, from an individual's average

 

10  weekly wage as determined in accordance with section 51, a

 

11  reasonable approximation of the weekly amount required to be

 

12  withheld by the employer from the remuneration of the individual

 

13  based on dependents and exemptions for income taxes under 26 USC

 

14  3401 to 3406, and under section 351 of the income tax act of

 

15  1967, 1967 PA 281, MCL 206.351, and for old age and survivor's

 

16  disability insurance taxes under the federal insurance

 

17  contributions act, 26 USC 3101 to 3128. For purposes of applying

 

18  the table to an individual's claim, a dependent shall be as

 

19  defined in subdivision (3). The table applicable to an

 

20  individual's claim shall be the table reflecting the number of

 

21  dependents claimed by the individual under subdivision (3). The

 

22  commission shall adjust the tables based on changes in

 

23  withholding schedules published by the United States department

 

24  of treasury, internal revenue service, and by the department of

 

25  treasury. The number of dependents allowed shall be determined

 

26  with respect to each week of unemployment for which an individual

 

27  is claiming benefits.

 


 1        (3) For benefit years beginning before October 1, 2000, a

 

 2  dependent means any of the following persons who are receiving

 

 3  and for at least 90 consecutive days immediately before the week

 

 4  for which benefits are claimed, or, in the case of a dependent

 

 5  husband, wife, or child, for the duration of the marital or

 

 6  parental relationship, if the relationship has existed less than

 

 7  90 days, has received more than 1/2 the cost of his or her

 

 8  support from the individual claiming benefits:

 

 9        (a) A child, including stepchild, adopted child, or

 

10  grandchild of the individual who is under 18 years of age, or 18

 

11  years of age or over if, because of physical or mental infirmity,

 

12  the child is unable to engage in a gainful occupation, or is a

 

13  full-time student as defined by the particular educational

 

14  institution, at a high school, vocational school, community or

 

15  junior college, or college or university and has not attained the

 

16  age of 22.

 

17        (b) The husband or wife of the individual.

 

18        (c) The legal father or mother of the individual if that

 

19  parent is either more than 65 years of age or is permanently

 

20  disabled from engaging in a gainful occupation.

 

21        (d) A brother or sister of the individual if the brother or

 

22  sister is orphaned or the living parents are dependent parents of

 

23  an individual, and the brother or sister is under 18 years of

 

24  age, or 18 years of age or over if, because of physical or mental

 

25  infirmity, the brother or sister is unable to engage in a gainful

 

26  occupation, or is a full-time student as defined by the

 

27  particular educational institution, at a high school, vocational

 


 1  school, community or junior college, or college or university and

 

 2  is less than 22 years of age.

 

 3        (4) For benefit years beginning on or after October 1, 2000,

 

 4  a dependent means any of the following persons who received for

 

 5  at least 90 consecutive days immediately before the first week of

 

 6  the benefit year or, in the case of a dependent husband, wife, or

 

 7  child, for the duration of the marital or parental relationship

 

 8  if the relationship existed less than 90 days before the

 

 9  beginning of the benefit year, has received more than 1/2 the

 

10  cost of his or her support from the individual claiming the

 

11  benefits:

 

12        (a) A child, including stepchild, adopted child, or

 

13  grandchild of the individual who is under 18 years of age, or 18

 

14  years of age and over if, because of physical or mental

 

15  infirmity, the child is unable to engage in a gainful occupation,

 

16  or is a full-time student as defined by the particular

 

17  educational institution, at a high school, vocational school,

 

18  community or junior college, or college or university and has not

 

19  attained the age of 22.

 

20        (b) The husband or wife of the individual.

 

21        (c) The legal father or mother of the individual if that

 

22  parent is either more than 65 years of age or is permanently

 

23  disabled from engaging in a gainful occupation.

 

24        (d) A brother or sister of the individual if the brother or

 

25  sister is orphaned or the living parents are dependent parents of

 

26  an individual, and the brother or sister is under 18 years of

 

27  age, or 18 years of age and over if, because of physical or

 


 1  mental infirmity, the brother or sister is unable to engage in a

 

 2  gainful occupation, or is a full-time student as defined by the

 

 3  particular educational institution, at a high school, vocational

 

 4  school, community or junior college, or college or university and

 

 5  is less than 22 years of age.

 

 6        (5) For benefit years beginning before October 1, 2000,

 

 7  dependency status of a dependent, child or otherwise, once

 

 8  established or fixed in favor of an individual continues during

 

 9  the individual's benefit year until terminated. Dependency status

 

10  of a dependent terminates at the end of the week in which the

 

11  dependent ceases to be an individual described in subdivision

 

12  (3)(a), (b), (c), or (d) because of age, death, or divorce. For

 

13  benefit years beginning on or after October 1, 2000, the number

 

14  of dependents established for an individual at the beginning of

 

15  the benefit year shall remain in effect during the entire benefit

 

16  year.

 

17        (6) For benefit years beginning before October 1, 2000,

 

18  failure on the part of an individual, due to misinformation or

 

19  lack of information, to furnish all information material for

 

20  determination of the number of the individual's dependents when

 

21  the individual files a claim for benefits with respect to a week

 

22  is good cause to issue a redetermination as to the amount of

 

23  benefits based on the number of the individual's dependents as of

 

24  the beginning date of that week. Dependency status of a

 

25  dependent, child or otherwise, once established or fixed in favor

 

26  of a person is not transferable to or usable by another person

 

27  with respect to the same week.

 


Senate Bill No. 806 (H-1) as amended December 14, 2011

 1        For benefit years beginning on or after October 1, 2000,

 

 2  failure on the part of an individual, due to misinformation or

 

 3  lack of information, to furnish all information material for

 

 4  determination of the number of the individual's dependents is

 

 5  good cause to issue a redetermination as to the amount of

 

 6  benefits based on the number of the individual's dependents as of

 

 7  the beginning of the benefit year.

 

 8        (c) Subject to subsection (f), all of the following apply to

 

 9  eligible individuals:

 

10        (1) Each eligible individual shall be paid a weekly benefit

 

11  rate with respect to the week for which the individual earns or

 

12  receives no remuneration. Notwithstanding the definition of week

 

13  in section 50, if within 2 consecutive weeks in which an

 

14  individual was not unemployed within the meaning of section 48

 

15  there was a period of 7 or more consecutive days for which the

 

16  individual did not earn or receive remuneration, that period

 

17  shall be considered a week for benefit purposes under this act if

 

18  a claim for benefits for that period is filed not later than 30

 

19  days after the end of the period.

 

20        (2) Each eligible individual shall have his or her weekly

 

21  benefit rate reduced with respect to each week in which the

 

22  individual earns or receives remuneration at the rate of [50 40] cents

 

23  for each whole $1.00 of remuneration earned or received during

 

24  that week. [Beginning October 1, 2015, an eligible individual's weekly

    benefit rate shall be 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.]

 

25        (3) An individual who receives or earns partial remuneration

 

26  may not receive a total of benefits and earnings that exceeds [1-1/2 1-

 

27  3/5] times his or her weekly benefit amount. For each dollar of

 


Senate Billl No. 806 (H-1) as amended December 14, 2011

 1  total benefits and earnings that exceeds [1-1/2 1-3/5] times the

 

 2  individual's weekly benefit amount, benefits shall be reduced by

 

 3  $1.00. [Beginning October 1, 2015, the total benefits and earnings for an

    individual who receives or earns partial remuneration shall not exceed 1-

    1/2 times his or her weekly benefit amount. The individual's benefits

    shall be 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        (4) If the reduction in a claimant's benefit rate for a week

 

 5  in accordance with subdivision (2) or (3) results in a benefit

 

 6  rate greater than zero for that week, the claimant's balance of

 

 7  weeks of benefit payments shall be reduced by 1 week.

 

 8        (5) All remuneration for work performed during a shift that

 

 9  terminates on 1 day but that began on the preceding day shall be

 

10  considered to have been earned by the eligible individual on the

 

11  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.]

12        (d) For benefit years beginning before October 1, 2000, and

 

13  subject to subsection (f) and this subsection, the amount of

 

14  benefits to which an individual who is otherwise eligible is

 

15  entitled during a benefit year from an employer with respect to

 

16  employment during the base period is the amount obtained by

 

17  multiplying the weekly benefit rate with respect to that

 

18  employment by 3/4 of the number of credit weeks earned in the

 

19  employment. For the purpose of this subsection and section 20(c),

 

20  if the resultant product is not an even multiple of 1/2 the

 

21  weekly benefit rate, the product shall be raised to an amount

 

22  equal to the next higher multiple of 1/2 the weekly benefit rate,

 

23  and, for an individual who was employed by only 1 employer in the

Senate Bill No. 806 (H-1) as amended December 14, 2011

 

24  individual's base period and earned 34 credit weeks with that

 

25  employer, the product shall be raised to the next higher multiple

 

26  of the weekly benefit rate. The maximum amount of benefits

 

27  payable to an individual within a benefit year, with respect to

 


 1  employment by an employer, shall not exceed 26 times the weekly

 

 2  benefit rate with respect to that employment. The maximum amount

 

 3  of benefits payable to an individual within a benefit year shall

 

 4  not exceed the amount to which the individual would be entitled

 

 5  for 26 weeks of unemployment in which remuneration was not earned

 

 6  or received. The limitation of total benefits set forth in this

 

 7  subsection does not apply to claimants declared eligible for

 

 8  training benefits in accordance with subsection (g). For benefit

 

 9  years beginning on or after October 1, 2000, and subject to

 

10  subsection (f) and this subsection, the maximum benefit amount

 

11  payable to an individual in a benefit year for purposes of this

 

12  section and section 20(d) is the number of weeks of benefits

 

13  payable to an individual during the benefit year, multiplied by

 

14  the individual's weekly benefit rate. The number of weeks of

 

15  benefits payable to an individual shall be calculated by taking

 

16  43% of the individual's base period wages and dividing the result

 

17  by the individual's weekly benefit rate. If the quotient is not a

 

18  whole or half number, the result shall be rounded down to the

 

19  nearest half number. However, for each eligible individual filing

 

20  an initial claim before January 15, 2012, not more than 26 weeks

 

21  of benefits or less than 14 weeks of benefits shall be payable to

 

22  an individual in a benefit year. For each eligible individual

 

23  filing an initial claim on or after January 15, 2012, not more

 

24  than 20 weeks of benefits or less than 14 weeks of benefits shall

 

25  be payable to an individual in a benefit year. The limitation of

 

26  total benefits set forth in this subsection does not apply to

 

27  claimants declared eligible for training benefits in accordance

 


 1  with subsection (g).

 

 2        (e) When a claimant dies or is judicially declared insane or

 

 3  mentally incompetent, unemployment compensation benefits accrued

 

 4  and payable to that person for weeks of unemployment before

 

 5  death, insanity, or incompetency, but not paid, shall become due

 

 6  and payable to the person who is the legal heir or guardian of

 

 7  the claimant or to any other person found by the commission to be

 

 8  equitably entitled to the benefits by reason of having incurred

 

 9  expense in behalf of the claimant for the claimant's burial or

 

10  other necessary expenses.

 

11        (f)(1) For benefit years beginning before October 1, 2000,

 

12  and notwithstanding any inconsistent provisions of this act, the

 

13  weekly benefit rate of each individual who is receiving or will

 

14  receive a "retirement benefit", as defined in subdivision (4),

 

15  shall be adjusted as provided in subparagraphs (a), (b), and (c).

 

16  However, an individual's extended benefit account and an

 

17  individual's weekly extended benefit rate under section 64 shall

 

18  be established without reduction under this subsection unless

 

19  subdivision (5) is in effect. Except as otherwise provided in

 

20  this subsection, all other provisions of this act continue to

 

21  apply in connection with the benefit claims of those retired

 

22  persons.

 

23        (a) If and to the extent that unemployment benefits payable

 

24  under this act would be chargeable to an employer who has

 

25  contributed to the financing of a retirement plan under which the

 

26  claimant is receiving or will receive a retirement benefit

 

27  yielding a pro rata weekly amount equal to or larger than the

 


 1  claimant's weekly benefit rate as otherwise established under

 

 2  this act, the claimant shall not receive unemployment benefits

 

 3  that would be chargeable to the employer under this act.

 

 4        (b) If and to the extent that unemployment benefits payable

 

 5  under this act would be chargeable to an employer who has

 

 6  contributed to the financing of a retirement plan under which the

 

 7  claimant is receiving or will receive a retirement benefit

 

 8  yielding a pro rata weekly amount less than the claimant's weekly

 

 9  benefit rate as otherwise established under this act, then the

 

10  weekly benefit rate otherwise payable to the claimant and

 

11  chargeable to the employer under this act shall be reduced by an

 

12  amount equal to the pro rata weekly amount, adjusted to the next

 

13  lower multiple of $1.00, which the claimant is receiving or will

 

14  receive as a retirement benefit.

 

15        (c) If the unemployment benefit payable under this act would

 

16  be chargeable to an employer who has not contributed to the

 

17  financing of a retirement plan under which the claimant is

 

18  receiving or will receive a retirement benefit, then the weekly

 

19  benefit rate of the claimant as otherwise established under this

 

20  act shall not be reduced due to receipt of a retirement benefit.

 

21        (d) If the unemployment benefit payable under this act is

 

22  computed on the basis of multiemployer credit weeks and a portion

 

23  of the benefit is allocable under section 20(e) to an employer

 

24  who has contributed to the financing of a retirement plan under

 

25  which the claimant is receiving or will receive a retirement

 

26  benefit, the adjustments required by subparagraph (a) or (b)

 

27  apply only to that portion of the weekly benefit rate that would

 


 1  otherwise be allocable and chargeable to the employer.

 

 2        (2) If an individual's weekly benefit rate under this act

 

 3  was established before the period for which the individual first

 

 4  receives a retirement benefit, any benefits received after a

 

 5  retirement benefit becomes payable shall be determined in

 

 6  accordance with the formula stated in this subsection.

 

 7        (3) When necessary to assure prompt payment of benefits, the

 

 8  commission shall determine the pro rata weekly amount yielded by

 

 9  an individual's retirement benefit based on the best information

 

10  currently available to it. In the absence of fraud, a

 

11  determination shall not be reconsidered unless it is established

 

12  that the individual's actual retirement benefit in fact differs

 

13  from the amount determined by $2.00 or more per week. The

 

14  reconsideration shall apply only to benefits as may be claimed

 

15  after the information on which the reconsideration is based was

 

16  received by the commission.

 

17        (4)(a) As used in this subsection, "retirement benefit"

 

18  means a benefit, annuity, or pension of any type or that part

 

19  thereof that is described in subparagraph (b) that is both:

 

20        (i) Provided as an incident of employment under an

 

21  established retirement plan, policy, or agreement, including

 

22  federal social security if subdivision (5) is in effect.

 

23        (ii) Payable to an individual because the individual has

 

24  qualified on the basis of attained age, length of service, or

 

25  disability, whether or not the individual retired or was retired

 

26  from employment. Amounts paid to individuals in the course of

 

27  liquidation of a private pension or retirement fund because of

 


 1  termination of the business or of a plant or department of the

 

 2  business of the employer involved are not retirement benefits.

 

 3        (b) If a benefit as described in subparagraph (a) is payable

 

 4  or paid to the individual under a plan to which the individual

 

 5  has contributed:

 

 6        (i) Less than 1/2 of the cost of the benefit, then only 1/2

 

 7  of the benefit is treated as a retirement benefit.

 

 8        (ii) One-half or more of the cost of the benefit, then none

 

 9  of the benefit is treated as a retirement benefit.

 

10        (c) The burden of establishing the extent of an individual's

 

11  contribution to the cost of his or her retirement benefit for the

 

12  purpose of subparagraph (b) is upon the employer who has

 

13  contributed to the plan under which a benefit is provided.

 

14        (5) Notwithstanding any other provision of this subsection,

 

15  for any week that begins after March 31, 1980, and with respect

 

16  to which an individual is receiving a governmental or other

 

17  pension and claiming unemployment compensation, the weekly

 

18  benefit amount payable to the individual for those weeks shall be

 

19  reduced, but not below zero, by the entire prorated weekly amount

 

20  of any governmental or other pension, retirement or retired pay,

 

21  annuity, or any other similar payment that is based on any

 

22  previous work of the individual. This reduction shall be made

 

23  only if it is required as a condition for full tax credit against

 

24  the tax imposed by the federal unemployment tax act, 26 USC 3301

 

25  to 3311.

 

26        (6) For benefit years beginning on or after October 1, 2000,

 

27  notwithstanding any inconsistent provisions of this act, the

 


 1  weekly benefit rate of each individual who is receiving or will

 

 2  receive a retirement benefit, as defined in subdivision (4),

 

 3  shall be adjusted as provided in subparagraphs (a), (b), and (c).

 

 4  However, an individual's extended benefit account and an

 

 5  individual's weekly extended benefit rate under section 64 shall

 

 6  be established without reduction under this subsection, unless

 

 7  subdivision (5) is in effect. Except as otherwise provided in

 

 8  this subsection, all the other provisions of this act apply to

 

 9  the benefit claims of those retired persons. However, if the

 

10  reduction would impair the full tax credit against the tax

 

11  imposed by the federal unemployment tax act, 26 USC 3301 to 3311,

 

12  unemployment benefits shall not be reduced as provided in

 

13  subparagraphs (a), (b), and (c) for receipt of any governmental

 

14  or other pension, retirement or retired pay, annuity, or other

 

15  similar payment that was not includable in the gross income of

 

16  the individual for the taxable year in which it was received

 

17  because it was a part of a rollover distribution.

 

18        (a) If any base period or chargeable employer has

 

19  contributed to the financing of a retirement plan under which the

 

20  claimant is receiving or will receive a retirement benefit

 

21  yielding a pro rata weekly amount equal to or larger than the

 

22  claimant's weekly benefit rate as otherwise established under

 

23  this act, the claimant shall not receive unemployment benefits.

 

24        (b) If any base period employer or chargeable employer has

 

25  contributed to the financing of a retirement plan under which the

 

26  claimant is receiving or will receive a retirement benefit

 

27  yielding a pro rata weekly amount less than the claimant's weekly

 


 1  benefit rate as otherwise established under this act, then the

 

 2  weekly benefit rate otherwise payable to the claimant shall be

 

 3  reduced by an amount equal to the pro rata weekly amount,

 

 4  adjusted to the next lower multiple of $1.00, which the claimant

 

 5  is receiving or will receive as a retirement benefit.

 

 6        (c) If no base period or separating employer has contributed

 

 7  to the financing of a retirement plan under which the claimant is

 

 8  receiving or will receive a retirement benefit, then the weekly

 

 9  benefit rate of the claimant as otherwise established under this

 

10  act shall not be reduced due to receipt of a retirement benefit.

 

11        (g) Notwithstanding any other provision of this act, an

 

12  individual pursuing vocational training or retraining pursuant to

 

13  section 28(2) who has exhausted all benefits available under

 

14  subsection (d) may be paid for each week of approved vocational

 

15  training pursued beyond the date of exhaustion a benefit amount

 

16  in accordance with subsection (c), but not in excess of the

 

17  individual's most recent weekly benefit rate. However, an

 

18  individual shall not be paid training benefits totaling more than

 

19  18 times the individual's most recent weekly benefit rate. The

 

20  expiration or termination of a benefit year shall not stop or

 

21  interrupt payment of training benefits if the training for which

 

22  the benefits were granted began before expiration or termination

 

23  of the benefit year.

 

24        (h) A payment of accrued unemployment benefits shall not be

 

25  made to an eligible individual or in behalf of that individual as

 

26  provided in subsection (e) more than 6 years after the ending

 

27  date of the benefit year covering the payment or 2 calendar years

 


 1  after the calendar year in which there is final disposition of a

 

 2  contested case, whichever is later.

 

 3        (i) Benefits based on service in employment described in

 

 4  section 42(8), (9), and (10) are payable in the same amount, on

 

 5  the same terms, and subject to the same conditions as

 

 6  compensation payable on the basis of other service subject to

 

 7  this act, except that:

 

 8        (1) With respect to service performed in an instructional,

 

 9  research, or principal administrative capacity for an institution

 

10  of higher education as defined in section 53(2), or for an

 

11  educational institution other than an institution of higher

 

12  education as defined in section 53(3), benefits shall not be paid

 

13  to an individual based on those services for any week of

 

14  unemployment beginning after December 31, 1977 that commences

 

15  during the period between 2 successive academic years or during a

 

16  similar period between 2 regular terms, whether or not

 

17  successive, or during a period of paid sabbatical leave provided

 

18  for in the individual's contract, to an individual if the

 

19  individual performs the service in the first of the academic

 

20  years or terms and if there is a contract or a reasonable

 

21  assurance that the individual will perform service in an

 

22  instructional, research, or principal administrative capacity for

 

23  an institution of higher education or an educational institution

 

24  other than an institution of higher education in the second of

 

25  the academic years or terms, whether or not the terms are

 

26  successive.

 

27        (2) With respect to service performed in other than an

 


 1  instructional, research, or principal administrative capacity for

 

 2  an institution of higher education as defined in section 53(2) or

 

 3  for an educational institution other than an institution of

 

 4  higher education as defined in section 53(3), benefits shall not

 

 5  be paid based on those services for any week of unemployment

 

 6  beginning after December 31, 1977 that commences during the

 

 7  period between 2 successive academic years or terms to any

 

 8  individual if that individual performs the service in the first

 

 9  of the academic years or terms and if there is a reasonable

 

10  assurance that the individual will perform the service for an

 

11  institution of higher education or an educational institution

 

12  other than an institution of higher education in the second of

 

13  the academic years or terms.

 

14        (3) With respect to any service described in subdivision (1)

 

15  or (2), benefits shall not be paid to an individual based upon

 

16  service for any week of unemployment that commences during an

 

17  established and customary vacation period or holiday recess if

 

18  the individual performs the service in the period immediately

 

19  before the vacation period or holiday recess and there is a

 

20  contract or reasonable assurance that the individual will perform

 

21  the service in the period immediately following the vacation

 

22  period or holiday recess.

 

23        (4) If benefits are denied to an individual for any week

 

24  solely as a result of subdivision (2) and the individual was not

 

25  offered an opportunity to perform in the second academic year or

 

26  term the service for which reasonable assurance had been given,

 

27  the individual is entitled to a retroactive payment of benefits

 


 1  for each week for which the individual had previously filed a

 

 2  timely claim for benefits. An individual entitled to benefits

 

 3  under this subdivision may apply for those benefits by mail in

 

 4  accordance with R 421.210 of the Michigan administrative code as

 

 5  promulgated by the commission.

 

 6        (5) Benefits based upon services in other than an

 

 7  instructional, research, or principal administrative capacity for

 

 8  an institution of higher education shall not be denied for any

 

 9  week of unemployment commencing during the period between 2

 

10  successive academic years or terms solely because the individual

 

11  had performed the service in the first of the academic years or

 

12  terms and there is reasonable assurance that the individual will

 

13  perform the service for an institution of higher education or an

 

14  educational institution other than an institution of higher

 

15  education in the second of the academic years or terms, unless a

 

16  denial is required as a condition for full tax credit against the

 

17  tax imposed by the federal unemployment tax act, 26 USC 3301 to

 

18  3311.

 

19        (6) For benefit years established before October 1, 2000,

 

20  and notwithstanding subdivisions (1), (2), and (3), the denial of

 

21  benefits does not prevent an individual from completing

 

22  requalifying weeks in accordance with section 29(3) nor does the

 

23  denial prevent an individual from receiving benefits based on

 

24  service with an employer other than an educational institution

 

25  for any week of unemployment occurring between academic years or

 

26  terms, whether or not successive, or during an established and

 

27  customary vacation period or holiday recess, even though the

 


 1  employer is not the most recent chargeable employer in the

 

 2  individual's base period. However, in that case section 20(b)

 

 3  applies to the sequence of benefit charging, except for the

 

 4  employment with the educational institution, and section 50(b)

 

 5  applies to the calculation of credit weeks. When a denial of

 

 6  benefits under subdivision (1) no longer applies, benefits shall

 

 7  be charged in accordance with the normal sequence of charging as

 

 8  provided in section 20(b).

 

 9        (7) For benefit years beginning on or after October 1, 2000,

 

10  and notwithstanding subdivisions (1), (2), and (3), the denial of

 

11  benefits shall not prevent an individual from completing

 

12  requalifying weeks in accordance with section 29(3) nor shall the

 

13  denial prevent an individual from receiving benefits based on

 

14  service with another base period employer other than an

 

15  educational institution for any week of unemployment occurring

 

16  between academic years or terms, whether or not successive, or

 

17  during an established and customary vacation period or holiday

 

18  recess. However, when benefits are paid based on service with 1

 

19  or more base period employers other than an educational

 

20  institution, the individual's weekly benefit rate shall be

 

21  calculated in accordance with subsection (b)(1) but during the

 

22  denial period the individual's weekly benefit payment shall be

 

23  reduced by the portion of the payment attributable to base period

 

24  wages paid by an educational institution and the account or

 

25  experience account of the educational institution shall not be

 

26  charged for benefits payable to the individual. When a denial of

 

27  benefits under subdivision (1) is no longer applicable, benefits

 


 1  shall be paid and charged on the basis of base period wages with

 

 2  each of the base period employers including the educational

 

 3  institution.

 

 4        (8) For the purposes of this subsection, "academic year"

 

 5  means that period, as defined by the educational institution,

 

 6  when classes are in session for that length of time required for

 

 7  students to receive sufficient instruction or earn sufficient

 

 8  credit to complete academic requirements for a particular grade

 

 9  level or to complete instruction in a noncredit course.

 

10        (9) In accordance with subdivisions (1), (2), and (3),

 

11  benefits for any week of unemployment shall be denied to an

 

12  individual who performed services described in subdivision (1),

 

13  (2), or (3) in an educational institution while in the employ of

 

14  an educational service agency. For the purpose of this

 

15  subdivision, "educational service agency" means a governmental

 

16  agency or governmental entity that is established and operated

 

17  exclusively for the purpose of providing the services to 1 or

 

18  more educational institutions.

 

19        (j) Benefits shall not be paid to an individual on the basis

 

20  of any base period services, substantially all of which consist

 

21  of participating in sports or athletic events or training or

 

22  preparing to participate, for a week that commences during the

 

23  period between 2 successive sport seasons or similar periods if

 

24  the individual performed the services in the first of the seasons

 

25  or similar periods and there is a reasonable assurance that the

 

26  individual will perform the services in the later of the seasons

 

27  or similar periods.

 


 1        (k)(1) Benefits are not payable on the basis of services

 

 2  performed by an alien unless the alien is an individual who was

 

 3  lawfully admitted for permanent residence at the time the

 

 4  services were performed, was lawfully present for the purpose of

 

 5  performing the services, or was permanently residing in the

 

 6  United States under color of law at the time the services were

 

 7  performed, including an alien who was lawfully present in the

 

 8  United States under section 212(d)(5) of the immigration and

 

 9  nationality act, 8 USC 1182.

 

10        (2) Any data or information required of individuals applying

 

11  for benefits to determine whether benefits are payable because of

 

12  their alien status are uniformly required from all applicants for

 

13  benefits.

 

14        (3) If an individual's application for benefits would

 

15  otherwise be approved, a determination that benefits to that

 

16  individual are not payable because of the individual's alien

 

17  status shall not be made except upon a preponderance of the

 

18  evidence.

 

19        (m)(1) An individual filing a new claim for unemployment

 

20  compensation under this act, at the time of filing the claim,

 

21  shall disclose whether the individual owes child support

 

22  obligations as defined in this subsection. If an individual

 

23  discloses that he or she owes child support obligations and is

 

24  determined to be eligible for unemployment compensation, the

 

25  commission unemployment agency shall notify the state or local

 

26  child support enforcement agency enforcing the obligation that

 

27  the individual has been determined to be eligible for

 


 1  unemployment compensation.

 

 2        (2) Notwithstanding section 30, the commission unemployment

 

 3  agency shall deduct and withhold from any unemployment

 

 4  compensation payable to an individual who owes child support

 

 5  obligations by using whichever of the following methods results

 

 6  in the greatest amount:

 

 7        (a) The amount, if any, specified by the individual to be

 

 8  deducted and withheld under this subdivision.

 

 9        (b) The amount, if any, determined pursuant to an agreement

 

10  submitted to the commission under 42 USC 654(19)(b)(i), by the

 

11  state or local child support enforcement agency.

 

12        (c) Any amount otherwise required to be deducted and

 

13  withheld from unemployment compensation by legal process, as that

 

14  term is defined in 42 USC 659(i)(5), properly served upon the

 

15  commission.

 

16        (3) The amount of unemployment compensation subject to

 

17  deduction under subdivision (2) is that portion that remains

 

18  payable to the individual after application of the recoupment

 

19  provisions of section 62(a) and the reduction provisions of

 

20  subsections (c) and (f).

 

21        (4) Any amount deducted and withheld under subdivision (2)

 

22  shall be paid by the commission to the appropriate state or local

 

23  child support enforcement agency.

 

24        (5) Any amount deducted and withheld under subdivision (2)

 

25  shall be treated for all purposes as if it were paid to the

 

26  individual as unemployment compensation and paid by the

 

27  individual to the state or local child support enforcement agency

 


 1  in satisfaction of the individual's child support obligations.

 

 2        (6) Provisions concerning deductions under this subsection

 

 3  apply only if the state or local child support enforcement agency

 

 4  agrees in writing to reimburse and does reimburse the commission

 

 5  for the administrative costs incurred by the commission under

 

 6  this subsection that are attributable to child support

 

 7  obligations being enforced by the state or local child support

 

 8  enforcement agency. The administrative costs incurred shall be

 

 9  determined by the commission. The commission, in its discretion,

 

10  may require payment of administrative costs in advance.

 

11        (7) As used in this subsection:

 

12        (a) "Unemployment compensation", for purposes of

 

13  subdivisions (1) to (5), means any compensation payable under

 

14  this act, including amounts payable by the commission pursuant to

 

15  an agreement under any federal law providing for compensation,

 

16  assistance, or allowances with respect to unemployment.

 

17        (b) "Child support obligations" includes only obligations

 

18  that are being enforced pursuant to a plan described in 42 USC

 

19  654 that has been approved by the secretary of health and human

 

20  services under 42 USC 651 to 669b.

 

21        (c) "State or local child support enforcement agency" means

 

22  any agency of this state or a political subdivision of this state

 

23  operating pursuant to a plan described in subparagraph (b).

 

24        (n) Subsection (i)(2) applies to services performed by

 

25  school bus drivers employed by a private contributing employer

 

26  holding a contractual relationship with an educational

 

27  institution, but only if at least 75% of the individual's base

 


 1  period wages with that employer are attributable to services

 

 2  performed as a school bus driver. Subsection (i)(1) and (2) but

 

 3  not subsection (i)(3) applies to other services described in

 

 4  those subdivisions that are performed by any employees under an

 

 5  employer's contract with an educational institution or an

 

 6  educational service agency.

 

 7        (o)(1) For weeks of unemployment beginning after July 1,

 

 8  1996, unemployment benefits based on services by a seasonal

 

 9  worker performed in seasonal employment are payable only for

 

10  weeks of unemployment that occur during the normal seasonal work

 

11  period. Benefits shall not be paid based on services performed in

 

12  seasonal employment for any week of unemployment beginning after

 

13  March 28, 1996 that begins during the period between 2 successive

 

14  normal seasonal work periods to any individual if that individual

 

15  performs the service in the first of the normal seasonal work

 

16  periods and if there is a reasonable assurance that the

 

17  individual will perform the service for a seasonal employer in

 

18  the second of the normal seasonal work periods. If benefits are

 

19  denied to an individual for any week solely as a result of this

 

20  subsection and the individual is not offered an opportunity to

 

21  perform in the second normal seasonal work period for which

 

22  reasonable assurance of employment had been given, the individual

 

23  is entitled to a retroactive payment of benefits under this

 

24  subsection for each week that the individual previously filed a

 

25  timely claim for benefits. An individual may apply for any

 

26  retroactive benefits under this subsection in accordance with R

 

27  421.210 of the Michigan administrative code.

 


 1        (2) Not less than 20 days before the estimated beginning

 

 2  date of a normal seasonal work period, an employer may apply to

 

 3  the commission in writing for designation as a seasonal employer.

 

 4  At the time of application, the employer shall conspicuously

 

 5  display a copy of the application on the employer's premises.

 

 6  Within 90 days after receipt of the application, the commission

 

 7  shall determine if the employer is a seasonal employer. A

 

 8  determination or redetermination of the commission concerning the

 

 9  status of an employer as a seasonal employer, or a decision of a

 

10  referee or the board of review, or of an administrative law

 

11  judge, the Michigan compensation appellate commission, or the

 

12  courts of this state concerning the status of an employer as a

 

13  seasonal employer, which has become final, together with the

 

14  record thereof, may be introduced in any proceeding involving a

 

15  claim for benefits, and the facts found and decision issued in

 

16  the determination, redetermination, or decision shall be

 

17  conclusive unless substantial evidence to the contrary is

 

18  introduced by or on behalf of the claimant.

 

19        (3) If the employer is determined to be a seasonal employer,

 

20  the employer shall conspicuously display on its premises a notice

 

21  of the determination and the beginning and ending dates of the

 

22  employer's normal seasonal work periods. The notice shall be

 

23  furnished by the commission. The notice shall additionally

 

24  specify that an employee must timely apply for unemployment

 

25  benefits at the end of a first seasonal work period to preserve

 

26  his or her right to receive retroactive unemployment benefits if

 

27  he or she is not reemployed by the seasonal employer in the

 


 1  second of the normal seasonal work periods.

 

 2        (4) The commission may issue a determination terminating an

 

 3  employer's status as a seasonal employer on the commission's own

 

 4  motion for good cause, or upon the written request of the

 

 5  employer. A termination determination under this subdivision

 

 6  terminates an employer's status as a seasonal employer, and

 

 7  becomes effective on the beginning date of the normal seasonal

 

 8  work period that would have immediately followed the date the

 

 9  commission issues the determination. A determination under this

 

10  subdivision is subject to review in the same manner and to the

 

11  same extent as any other determination under this act.

 

12        (5) An employer whose status as a seasonal employer is

 

13  terminated under subdivision (4) may not reapply for a seasonal

 

14  employer status determination until after a regularly recurring

 

15  normal seasonal work period has begun and ended.

 

16        (6) If a seasonal employer informs an employee who received

 

17  assurance of being rehired that, despite the assurance, the

 

18  employee will not be rehired at the beginning of the employer's

 

19  next normal seasonal work period, this subsection does not

 

20  prevent the employee from receiving unemployment benefits in the

 

21  same manner and to the same extent he or she would receive

 

22  benefits under this act from an employer who has not been

 

23  determined to be a seasonal employer.

 

24        (7) A successor of a seasonal employer is considered to be a

 

25  seasonal employer unless the successor provides the commission,

 

26  within 120 days after the transfer, with a written request for

 

27  termination of its status as a seasonal employer in accordance

 


 1  with subdivision (4).

 

 2        (8) At the time an employee is hired by a seasonal employer,

 

 3  the employer shall notify the employee in writing if the employee

 

 4  will be a seasonal worker. The employer shall provide the worker

 

 5  with written notice of any subsequent change in the employee's

 

 6  status as a seasonal worker. If an employee of a seasonal

 

 7  employer is denied benefits because that employee is a seasonal

 

 8  worker, the employee may contest that designation in accordance

 

 9  with section 32a.

 

10        (9) As used in this subsection:

 

11        (a) "Construction industry" means the work activity

 

12  designated in sector group 23 - construction of the North

 

13  American classification system - United States office of

 

14  management and budget, 1997 edition.

 

15        (b) "Normal seasonal work period" means that period or those

 

16  periods of time determined under rules promulgated by the

 

17  commission during which an individual is employed in seasonal

 

18  employment.

 

19        (c) "Seasonal employment" means the employment of 1 or more

 

20  individuals primarily hired to perform services in an industry,

 

21  other than the construction industry, that does either of the

 

22  following:

 

23        (1) Customarily operates during regularly recurring periods

 

24  of 26 weeks or less in any 52-consecutive-week 52-week period

 

25  other than services in the construction industry.

 

26        (2) Customarily employs at least 50% of its employees for

 

27  regularly recurring periods of 26 weeks or less within a period

 


 1  of 52 consecutive weeks.

 

 2        (d) "Seasonal employer" means an employer, other than an

 

 3  employer in the construction industry, who applies to the

 

 4  commission for designation as a seasonal employer and who the

 

 5  commission determines to be is an employer whose operations and

 

 6  business are substantially require employees engaged in seasonal

 

 7  employment. A seasonal employer designation under this act need

 

 8  not correspond to a category assigned under the North American

 

 9  classification system — United States office of management and

 

10  budget.

 

11        (e) "Seasonal worker" means a worker who has been paid wages

 

12  by a seasonal employer for work performed only during the normal

 

13  seasonal work period.

 

14        (10) This subsection does not apply if the United States

 

15  department of labor finds it to be contrary to the federal

 

16  unemployment tax act, 26 USC 3301 to 3311, or the social security

 

17  act, chapter 531, 49 Stat. 620, and if conformity with the

 

18  federal law is required as a condition for full tax credit

 

19  against the tax imposed under the federal unemployment tax act,

 

20  26 USC 3301 to 3311, or as a condition for receipt by the

 

21  commission of federal administrative grant funds under the social

 

22  security act, chapter 531, 49 Stat. 620.

 

23        (p) Benefits shall not be paid to an individual based upon

 

24  his or her services as a school crossing guard for any week of

 

25  unemployment that begins between 2 successive academic years or

 

26  terms, if that individual performs the services of a school

 

27  crossing guard in the first of the academic years or terms and

 


 1  has a reasonable assurance that he or she will perform those

 

 2  services in the second of the academic years or terms.

 

 3        Sec. 28. (1) An unemployed individual shall be is eligible

 

 4  to receive benefits with respect to any week only if the

 

 5  commission unemployment agency finds that:all of the following:

 

 6        (a) For benefit years established before the conversion date

 

 7  prescribed in section 75 October 1, 2000, the individual has

 

 8  registered for work at and thereafter has continued to report at

 

 9  an employment office in accordance with such rules as the

 

10  commission may prescribe unemployment agency rules and is seeking

 

11  work. The requirements that the individual must report at an

 

12  employment office, must register for work, must be available to

 

13  perform suitable full-time work, and must seek work may be waived

 

14  by the commission unemployment agency if the individual is laid

 

15  off and the employer who laid the individual off notifies the

 

16  commission unemployment agency in writing or by computerized data

 

17  exchange that the layoff is temporary and that work is expected

 

18  to be available for the individual within a declared number of

 

19  days, not to exceed 45 calendar days following the last day the

 

20  individual worked. This waiver shall not be effective unless the

 

21  notification from the employer has been received by the

 

22  commission unemployment agency before the individual has

 

23  completed his or her first compensable week following layoff. If

 

24  the individual is not recalled within the specified period, the

 

25  waiver shall cease to be operative with respect to that layoff.

 

26  Except for a period of disqualification, the requirement that the

 

27  individual shall seek work may be waived by the commission

 


 1  unemployment agency where it finds that suitable work is

 

 2  unavailable both in the locality where the individual resides and

 

 3  in those localities in which the individual has earned base

 

 4  period credit weeks. This waiver shall not apply, for weeks of

 

 5  unemployment beginning on or after March 1, 1981, to a claimant

 

 6  enrolled and attending classes as a full-time student. An

 

 7  individual shall have has satisfied the requirement of personal

 

 8  reporting at an employment office, as applied to a week in a

 

 9  period during which the requirements of registration and seeking

 

10  work have been waived by the commission unemployment agency

 

11  pursuant to this subdivision, if the individual has satisfied the

 

12  personal reporting requirement with respect to a preceding week

 

13  in that period and the individual has reported with respect to

 

14  the week by mail in accordance with the rules promulgated by the

 

15  commission unemployment agency. For benefit years established on

 

16  or after the conversion date prescribed in section 75 October 1,

 

17  2000, the individual has registered for work and has continued to

 

18  report in accordance with such rules as the commission may

 

19  prescribe unemployment agency rules and is actively engaged in

 

20  seeking work. The requirements that the individual must report,

 

21  must register for work, must be available to perform suitable

 

22  full-time work, and must seek work may be waived by the

 

23  commission unemployment agency if the individual is laid off and

 

24  the employer who laid the individual off notifies the commission

 

25  unemployment agency in writing or by computerized data exchange

 

26  that the layoff is temporary and that work is expected to be

 

27  available for the individual within a declared number of days,

 


 1  not to exceed 45 calendar days following the last day the

 

 2  individual worked. This waiver shall not be effective unless the

 

 3  notification from the employer has been received by the

 

 4  commission unemployment agency before the individual has

 

 5  completed his or her first compensable week following layoff. If

 

 6  the individual is not recalled within the specified period, the

 

 7  waiver shall cease to be operative with respect to that layoff.

 

 8  Except for a period of disqualification, the requirement that the

 

 9  individual shall seek work may be waived by the commission where

 

10  unemployment agency if it finds that suitable work is unavailable

 

11  both in the locality where the individual resides and in those

 

12  localities in which the individual has earned wages during or

 

13  after the base period. This waiver shall does not apply to a

 

14  claimant enrolled and attending classes as a full-time student.

 

15  An individual shall be is considered to have satisfied the

 

16  requirement of personal reporting at an employment office, as

 

17  applied to a week in a period during which the requirements of

 

18  registration and seeking work have been waived by the commission

 

19  unemployment agency pursuant to this subdivision, if the

 

20  individual has satisfied the personal reporting requirement with

 

21  respect to a preceding week in that period and the individual has

 

22  reported with respect to the week by mail in accordance with the

 

23  rules promulgated by the commission.unemployment agency.

 

24        (b) The individual has made a claim for benefits in

 

25  accordance with section 32 and has provided the commission

 

26  unemployment agency with his or her social security number.

 

27        (c) The individual is able and available to appear at a

 


 1  location of the unemployment agency's choosing for evaluation of

 

 2  eligibility for benefits, if required, and to perform suitable

 

 3  full-time work of a character which the individual is qualified

 

 4  to perform by past experience or training, which is of a

 

 5  character generally similar to work for which the individual has

 

 6  previously received wages, and for which the individual is

 

 7  available, full time, either at a locality at which the

 

 8  individual earned wages for insured work during his or her base

 

 9  period or at a locality where it is found by the commission

 

10  unemployment agency that such work is available. An individual is

 

11  considered unavailable for work under any of the following

 

12  circumstances:

 

13        (i) The individual fails during a benefit year to notify or

 

14  update a chargeable employer with telephone, electronic mail, or

 

15  other information sufficient to allow the employer to contact the

 

16  individual about available work.

 

17        (ii) The individual fails, without good cause, to respond to

 

18  the unemployment agency within 14 calendar days of the later of

 

19  the mailing of a notice to the address of record requiring the

 

20  individual to contact the unemployment agency or of the leaving

 

21  of a telephone message requesting a return call and providing a

 

22  return name and telephone number on an automated answering device

 

23  or with an individual answering the telephone number of record.

 

24        (iii) Unless the claimant shows good cause for failure to

 

25  respond, mail sent to the individual's address of record is

 

26  returned as undeliverable and the telephone number of record has

 

27  been disconnected or changed or is otherwise no longer associated

 


 1  with the individual.

 

 2        (d) In the event of the death of an individual's immediate

 

 3  family member, the eligibility requirements of availability and

 

 4  reporting shall be waived for the day of the death and for 4

 

 5  consecutive calendar days thereafter. As used in this

 

 6  subdivision, "immediate family member" means a spouse, child,

 

 7  stepchild, adopted child, grandchild, parent, grandparent,

 

 8  brother, or sister of the individual or his or her spouse. It

 

 9  shall also include the spouse of any of the persons specified in

 

10  the previous sentence.

 

11        (e) The individual participates in reemployment services,

 

12  such as job search assistance services, if the individual has

 

13  been determined or redetermined by the commission unemployment

 

14  agency to be likely to exhaust regular benefits and need

 

15  reemployment services pursuant to a profiling system established

 

16  by the commission.unemployment agency.

 

17        (2) The commission unemployment agency may authorize an

 

18  individual with an unexpired benefit year to pursue vocational

 

19  training or retraining only if the commission unemployment agency

 

20  finds that:

 

21        (a) Reasonable opportunities for employment in occupations

 

22  for which the individual is fitted by training and experience do

 

23  not exist in the locality in which the individual is claiming

 

24  benefits.

 

25        (b) The vocational training course relates to an occupation

 

26  or skill for which there are, or are expected to be in the

 

27  immediate future, reasonable employment opportunities.

 


 1        (c) The training course has been approved by a local

 

 2  advisory council on which both management and labor are

 

 3  represented, or if there is no local advisory council, by the

 

 4  commission.unemployment agency.

 

 5        (d) The individual has the required qualifications and

 

 6  aptitudes to complete the course successfully.

 

 7        (e) The vocational training course has been approved by the

 

 8  state board of education and is maintained by a public or private

 

 9  school or by the commission.unemployment agency.

 

10        (3) Notwithstanding any other provision of this act, an

 

11  otherwise eligible individual shall not be ineligible for

 

12  benefits because he or she is participating in training with the

 

13  approval of the commission unemployment agency. For each week

 

14  that the commission unemployment agency finds that an individual

 

15  who is claiming benefits under this act and who is participating

 

16  in training with the approval of the commission unemployment

 

17  agency, is satisfactorily pursuing an approved course of

 

18  vocational training, it shall waive the requirements that he or

 

19  she be available for work and be seeking work as prescribed in

 

20  subsection (1)(a) and (c), and it shall find good cause for his

 

21  or her failure to apply for suitable work, report to a former

 

22  employer for an interview concerning suitable work, or accept

 

23  suitable work as required in section 29(1)(c), (d), and (e).

 

24        (4) The waiver of the requirement that a claimant seek work,

 

25  as provided in subsection (1)(a), shall not be applicable to

 

26  weeks of unemployment for which the claimant is claiming extended

 

27  benefits if section 64(8)(a)(ii) is in effect, unless the

 


 1  individual is participating in training approved by the

 

 2  commission.unemployment agency.

 

 3        (5) Notwithstanding any other provisions of this act, an

 

 4  otherwise eligible individual shall not be denied benefits for

 

 5  any week beginning after October 30, 1982 solely because the

 

 6  individual is in training approved under section 236(a)(1) of the

 

 7  trade act of 1974, as amended, 19 U.S.C. USC 2296, nor shall the

 

 8  individual be denied benefits by reason of leaving work to enter

 

 9  such training if the work left is not suitable employment.

 

10  Furthermore, an otherwise eligible individual shall not be denied

 

11  benefits because of the application to any such week in training

 

12  of provisions of this act, or any applicable federal unemployment

 

13  compensation law, relating to availability for work, active

 

14  search for work, or refusal to accept work. For purposes of this

 

15  subsection, "suitable employment" means, with respect to an

 

16  individual, work of a substantially equal or higher skill level

 

17  than the individual's past adversely affected employment, as

 

18  defined for purposes of the trade act of 1974, 19 U.S.C. USC 2101

 

19  to 2495, and wages for that work at not less than 80% of the

 

20  individual's average weekly wage as determined for the purposes

 

21  of the trade act of 1974.

 

22        (6) For purposes of this section, for benefit years

 

23  beginning on or after January 1, 2013, to be actively engaged in

 

24  seeking work, an individual must conduct a systematic and

 

25  sustained search for work in each week the individual is claiming

 

26  benefits, using any of the following methods to report the

 

27  details of the work search:

 


 1        (a) Reporting at monthly intervals on the unemployment

 

 2  agency's online reporting system the name of each employer and

 

 3  physical or online location of each employer where work was

 

 4  sought and the date and method by which work was sought with each

 

 5  employer.

 

 6        (b) Filing a written report with the unemployment agency by

 

 7  mail or facsimile transmission not later than the end of the

 

 8  fourth calendar week after the end of the week in which the

 

 9  individual engaged in the work search, on a form approved by the

 

10  unemployment agency, indicating the name of each employer and

 

11  physical or online location of each employer where work was

 

12  sought and the date and method by which work was sought with each

 

13  employer.

 

14        (c) Appearing at least monthly in person at a Michigan works

 

15  agency office to report the name and physical or online location

 

16  of each employer where the individual sought work during the

 

17  previous month and the date and method by which work was sought

 

18  with each employer.

 

19        (7) The work search conducted by the claimant is subject to

 

20  random audit by the unemployment agency.

 

21        Sec. 29. (1) Except as provided in subsection (5), an

 

22  individual is disqualified from receiving benefits if he or she:

 

23        (a) Left work voluntarily without good cause attributable to

 

24  the employer or employing unit. An individual who left work is

 

25  presumed to have left work voluntarily without good cause

 

26  attributable to the employer or employing unit. An individual who

 

27  is absent from work for a period of 3 consecutive work days or

 


 1  more without contacting the employer in a manner acceptable to

 

 2  the employer and of which the individual was informed at the time

 

 3  of hire shall be considered to have voluntarily left work without

 

 4  good cause attributable to the employer. An individual who

 

 5  becomes unemployed as a result of negligently losing a

 

 6  requirement for the job of which he or she was informed at the

 

 7  time of hire shall be considered to have voluntarily left work

 

 8  without good cause attributable to the employer. An individual

 

 9  claiming benefits under this act has the burden of proof to

 

10  establish that he or she left work involuntarily or for good

 

11  cause that was attributable to the employer or employing unit. An

 

12  individual claiming to have left work involuntarily for medical

 

13  reasons must have done all of the following before the leaving:

 

14  secured a statement from a medical professional that continuing

 

15  in the individual's current job would be harmful to the

 

16  individual's physical or mental health; unsuccessfully attempted

 

17  to secure alternative work with the employer; and unsuccessfully

 

18  attempted to be placed on a leave of absence with the employer to

 

19  last until the individual's mental or physical health would no

 

20  longer be harmed by the current job. However, if either any of

 

21  the following conditions is met, the leaving does not disqualify

 

22  the individual:

 

23        (i) The individual has an established benefit year in effect

 

24  and during that benefit year leaves unsuitable work within 60

 

25  days after the beginning of that work. Benefits paid after a

 

26  leaving under this subparagraph shall not be charged to the

 

27  experience account of the employer the individual left, but shall

 


 Senate Bill No. 806 (H-1) as amended December 14, 2011

 1  be charged instead to the nonchargable benefits account.

 

 2        (ii) The individual is the spouse of a full-time member of

 

 3  the United States armed forces, and the leaving is due to the

 

 4  military duty reassignment of that member of the United States

 

 5  armed forces to a different geographic location. [Benefits paid after a

    leaving under this subparagraph shall not be charged to the experience

    account of the employer the individual left, but shall be charged instead

    to the nonchargeable benefits account.]

 

 6        (iii) The individual is concurrently working part-time for an

 

 7  employer or employing unit and for another employer or employing

 

 8  unit and voluntarily leaves the part-time work while continuing

 

 9  work with the other employer. The portion of the benefits paid in

 

10  accordance with this [SUBPARAGRAPH] that would otherwise be charged

 

11  to the experience account of the part-time employer that the

 

12  individual left shall not be charged to the account of that

 

13  employer, but shall be charged instead to the nonchargeable

 

14  benefits account.

 

15        (b) Was suspended or discharged for misconduct connected

 

16  with the individual's work or for intoxication while at work.

 

17        (c) Failed without good cause to apply diligently for

 

18  available suitable work after receiving from the employment

 

19  office or the commission notice from the unemployment agency of

 

20  the availability of that work or failed to apply for work with

 

21  employers that could reasonably be expected to have suitable work

 

22  available.

 

23        (d) Failed without good cause while unemployed to report to

 

24  the individual's former employer or employing unit within a

 

25  reasonable time after that employer or employing unit provided

 

26  notice of the availability of an interview concerning available

 

27  suitable work with the former employer or employing unit.

 


 1        (e) Failed without good cause to accept suitable work

 

 2  offered to the individual or to return to the individual's

 

 3  customary self-employment, if any, when directed by the

 

 4  employment office or the commission unemployment agency. An

 

 5  employer that receives a monetary determination under section 32

 

 6  may notify the unemployment agency regarding the availability of

 

 7  suitable work with the employer on the monetary determination or

 

 8  other form provided by the unemployment agency. Upon receipt of

 

 9  the notice of the availability of suitable work, the unemployment

 

10  agency shall notify the claimant of the availability of suitable

 

11  work.

 

12        (f) Lost his or her job due to absence from work resulting

 

13  from a violation of law for which the individual was convicted

 

14  and sentenced to jail or prison. This subdivision does not apply

 

15  if conviction of an individual results in a sentence to county

 

16  jail under conditions of day parole as provided in 1962 PA 60,

 

17  MCL 801.251 to 801.258, or if the conviction was for a traffic

 

18  violation that resulted in an absence of less than 10 consecutive

 

19  work days from the individual's place of employment.

 

20        (g) Is discharged, whether or not the discharge is

 

21  subsequently reduced to a disciplinary layoff or suspension, for

 

22  participation in either of the following:

 

23        (i) A strike or other concerted action in violation of an

 

24  applicable collective bargaining agreement that results in

 

25  curtailment of work or restriction of or interference with

 

26  production.

 

27        (ii) A wildcat strike or other concerted action not

 


 1  authorized by the individual's recognized bargaining

 

 2  representative.

 

 3        (h) Was discharged for an act of assault and battery

 

 4  connected with the individual's work.

 

 5        (i) Was discharged for theft connected with the individual's

 

 6  work.

 

 7        (j) Was discharged for willful destruction of property

 

 8  connected with the individual's work.

 

 9        (k) Committed a theft after receiving notice of a layoff or

 

10  discharge, but before the effective date of the layoff or

 

11  discharge, resulting in loss or damage to the employer who would

 

12  otherwise be chargeable for the benefits, regardless of whether

 

13  the individual qualified for the benefits before the theft.

 

14        (l) Was employed by a temporary help firm, which as used in

 

15  this section means an employer whose primary business is to

 

16  provide a client with the temporary services of 1 or more

 

17  individuals under contract with the employer, to perform services

 

18  for a client of that firm if each of the following conditions is

 

19  met:

 

20        (i) The temporary help firm provided the employee with a

 

21  written notice before the employee began performing services for

 

22  the client stating in substance both of the following:

 

23        (A) That within 7 days after completing services for a

 

24  client of the temporary help firm, the employee is under a duty

 

25  to notify the temporary help firm of the completion of those

 

26  services.

 

27        (B) That a failure to provide the temporary help firm with

 


 1  notice of the employee's completion of services pursuant to sub-

 

 2  subparagraph (A) constitutes a voluntary quit that will affect

 

 3  the employee's eligibility for unemployment compensation should

 

 4  the employee seek unemployment compensation following completion

 

 5  of those services.

 

 6        (ii) The employee did not provide the temporary help firm

 

 7  with notice that the employee had completed his or her services

 

 8  for the client within 7 days after completion of his or her

 

 9  services for the client.

 

10        (m) Was discharged for illegally ingesting, injecting,

 

11  inhaling, or possessing a controlled substance on the premises of

 

12  the employer; refusing to submit to a drug test that was required

 

13  to be administered in a nondiscriminatory manner; or testing

 

14  positive on a drug test, if the test was administered in a

 

15  nondiscriminatory manner. If the worker disputes the result of

 

16  the testing, and if a generally accepted confirmatory test shall

 

17  be administered and shall also indicate a positive result for the

 

18  presence of a controlled substance before a disqualification of

 

19  the worker under this subdivision. has not been administered on

 

20  the same sample previously tested, then a generally accepted

 

21  confirmatory test shall be administered on that sample. If the

 

22  confirmatory test also indicates a positive result for the

 

23  presence of a controlled substance, the worker who is discharged

 

24  as a result of the test result will be disqualified under this

 

25  subdivision. A report by a drug testing facility showing a

 

26  positive result for the presence of a controlled substance is

 

27  conclusive unless there is substantial evidence to the contrary.

 


 1  As used in this subdivision:

 

 2        (i) "Controlled substance" means that term as defined in

 

 3  section 7104 of the public health code, 1978 PA 368, MCL

 

 4  333.7104.

 

 5        (ii) "Drug test" means a test designed to detect the illegal

 

 6  use of a controlled substance.

 

 7        (iii) "Nondiscriminatory manner" means administered

 

 8  impartially and objectively in accordance with a collective

 

 9  bargaining agreement, rule, policy, a verbal or written notice,

 

10  or a labor-management contract.

 

11        (n) Theft from the employer that resulted in the employee's

 

12  conviction, within 2 years of the date of the discharge, of theft

 

13  or a lesser included offense.

 

14        (2) A disqualification under subsection (1) begins the week

 

15  in which the act or discharge that caused the disqualification

 

16  occurs and continues until the disqualified individual

 

17  requalifies under subsection (3), except that for benefit years

 

18  beginning before October 1, 2000, the disqualification does not

 

19  prevent the payment of benefits if there are credit weeks, other

 

20  than multiemployer credit weeks, after the most recent

 

21  disqualifying act or discharge.

 

22        (3) After the week in which the disqualifying act or

 

23  discharge described in subsection (1) occurs, an individual who

 

24  seeks to requalify for benefits is subject to all of the

 

25  following:

 

26        (a) For benefit years established before October 1, 2000,

 

27  the individual shall complete 6 requalifying weeks if he or she

 


 1  was disqualified under subsection (1)(c), (d), (e), (f), (g), or

 

 2  (l), or 13 requalifying weeks if he or she was disqualified under

 

 3  subsection (1)(h), (i), (j), (k), or (m). A requalifying week

 

 4  required under this subdivision is each week in which the

 

 5  individual does any of the following:

 

 6        (i) Earns or receives remuneration in an amount at least

 

 7  equal to an amount needed to earn a credit week, as that term is

 

 8  defined in section 50.

 

 9        (ii) Otherwise meets all of the requirements of this act to

 

10  receive a benefit payment if the individual were not disqualified

 

11  under subsection (1).

 

12        (iii) Receives a benefit payment based on credit weeks

 

13  subsequent to the disqualifying act or discharge.

 

14        (b) For benefit years established before October 1, 2000, if

 

15  the individual is disqualified under subsection (1)(a) or (b), he

 

16  or she shall requalify, after the week in which the disqualifying

 

17  discharge occurred by earning in employment for an employer

 

18  liable under this act or the unemployment compensation act of

 

19  another state an amount equal to, or in excess of, 7 times the

 

20  individual's potential weekly benefit rate, calculated on the

 

21  basis of employment with the employer involved in the

 

22  disqualification, or by earning in employment for an employer

 

23  liable under this act or the unemployment compensation act of

 

24  another state an amount equal to, or in excess of, 40 times the

 

25  state minimum hourly wage times 7, whichever is the lesser

 

26  amount.

 

27        (c) For benefit years established before October 1, 2000, a

 


 1  benefit payable to an individual disqualified under subsection

 

 2  (1)(a) or (b) shall be charged to the nonchargeable benefits

 

 3  account, and not to the account of the employer with whom the

 

 4  individual was involved in the disqualification.

 

 5        (d) For benefit years beginning on or after October 1, 2000,

 

 6  after the week in which the disqualifying act or discharge

 

 7  occurred, an individual shall complete 13 requalifying weeks if

 

 8  he or she was disqualified under subsection (1)(c), (d), (e),

 

 9  (f), (g), or (l), or 26 requalifying weeks if he or she was

 

10  disqualified under subsection (1)(h), (i), (j), (k), or (m), or

 

11  (n). A requalifying week required under this subdivision is each

 

12  week in which the individual does any of the following:

 

13        (i) Earns or receives remuneration in an amount equal to at

 

14  least 1/13 of the minimum amount needed in a calendar quarter of

 

15  the base period for an individual to qualify for benefits,

 

16  rounded down to the nearest whole dollar.

 

17        (ii) Otherwise meets all of the requirements of this act to

 

18  receive a benefit payment if the individual was not disqualified

 

19  under subsection (1).

 

20        (e) For benefit years beginning on or after October 1, 2000

 

21  and beginning before April 26, 2002, if the individual is

 

22  disqualified under subsection (1)(a) or (b), he or she shall

 

23  requalify, after the week in which the disqualifying act or

 

24  discharge occurred by earning in employment for an employer

 

25  liable under this act or the unemployment compensation law of

 

26  another state at least the lesser of the following:

 

27        (i) Seven times the individual's weekly benefit rate.

 


 1        (ii) Forty times the state minimum hourly wage times 7.

 

 2        (f) For benefit years beginning on or after April 26, 2002,

 

 3  if the individual is disqualified under subsection (1)(a), he or

 

 4  she shall requalify, after the week in which the disqualifying

 

 5  act or discharge occurred by earning in employment for an

 

 6  employer liable under this act or the unemployment compensation

 

 7  law of another state at least 12 times the individual's weekly

 

 8  benefit rate.

 

 9        (g) For benefit years beginning on or after April 26, 2002,

 

10  if the individual is disqualified under subsection (1)(b), he or

 

11  she shall requalify, after the week in which the disqualifying

 

12  act or discharge occurred by earning in employment for an

 

13  employer liable under this act or the unemployment compensation

 

14  law of another state at least 17 times the individual's weekly

 

15  benefit rate.

 

16        (h) A benefit payable to the individual disqualified or

 

17  separated under disqualifying circumstances under subsection

 

18  (1)(a) or (b), shall be charged to the nonchargeable benefits

 

19  account, and not to the account of the employer with whom the

 

20  individual was involved in the separation. Benefits payable to an

 

21  individual determined by the commission unemployment agency to be

 

22  separated under disqualifying circumstances shall not be charged

 

23  to the account of the employer involved in the disqualification

 

24  for any period after the employer notifies the commission

 

25  unemployment agency of the claimant's possible ineligibility or

 

26  disqualification. However, an individual filing a new claim for

 

27  benefits who reports the reason for separation from a base period

 


 1  employer as a voluntary leaving shall be presumed to have