April 27, 2017, Introduced by Reps. Ellison, Frederick, Love, Cole, Barrett, Dianda, Chirkun, Sabo, Sneller, Marino, Schor, Elder, LaGrand, Kahle, Wittenberg, Liberati, Geiss, Leutheuser, Gay-Dagnogo, Moss, Sowerby, Camilleri, Crawford, Yanez, Brinks, Guerra, Yaroch and Pagan and referred to the Committee on Workforce and Talent Development.
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending section 11 (MCL 421.11), as amended by 2011 PA 269.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
11. (a) In the administration of this act, the commission
unemployment agency shall cooperate with the appropriate agency of
the
United States under the social security act. The commission
unemployment agency shall make reports, in a form and containing
information as the appropriate agency of the United States may
require, and shall comply with the provisions that the appropriate
agency of the United States prescribes to assure the correctness
and
verification of the reports. The commission, unemployment
agency, subject to this act, shall comply with the regulations
prescribed by the appropriate agency of the United States relating
to the receipt or expenditure of the sums that are allotted and
paid to this state for the purpose of assisting in the
administration of this act. As used in this section, "social
security
act" means the social security act, chapter 531, 49 Stat.
620.42 USC 301 to 1397mm.
(b)(1)
Information obtained from any an
employing unit or
individual pursuant to the administration of this act and
determinations as to the benefit rights of any individual are
confidential
and shall must not be disclosed or open to public
inspection other than to public employees and public officials in
the performance of their official duties under this act and to
agents or contractors of those public officials, including those
described
in subdivision subparagraph
(viii), in any a manner that
reveals the individual's or the employing unit's identity or any
identifying
particular about any an individual or any a past
or
present employing unit or that could foreseeably be combined with
other publicly available information to reveal identifying
particulars. However, all of the following apply:
(i) Information in the commission's unemployment agency's
possession that might affect a claim for worker's disability
compensation under the worker's disability compensation act of
1969,
1969 PA 317, MCL 418.101 to 418.941, shall must be
available
to interested parties as defined in R 421.201 of the Michigan
administrative
code, Administrative Code, regardless of whether the
commission
unemployment agency is a party to an action or
proceeding arising under that act.
(ii) Any information in the commission's unemployment agency's
possession
that may might affect a claim for benefits or a charge
to
an employer's experience account shall must be available to
interested parties as defined in R 421.201 of the Michigan
administrative
code, Administrative Code, and to their agents, if
their agents provide the unemployment insurance agency with a
written authorization of representation from the party represented.
A written authorization of representation is not required in any of
the following circumstances:
(A) If the request is made by an attorney who is retained by
an interested party and files an appearance for purposes related to
a claim for unemployment benefits.
(B) If the request is made by an elected official performing
constituent services and the elected official presents reasonable
evidence that the identified individual authorized the disclosure.
(C) If the request is made by a third party who is not acting
as an agent for an interested party and the third party presents a
release from an interested party for the information. The release
shall
must be signed by an interested party; specify the
information to be released and all individuals who may receive the
information; and state the specific purpose for which the
information is sought, that files of the state may be accessed to
obtain the information, and that the information sought will only
be used for the purpose indicated. The purpose specified in the
release
shall must be limited to that of providing a service or
benefit to the individual signing the release or carrying out
administration or evaluation of a public program to which the
release pertains.
(iii) Except as provided in this act, the information and
determinations
shall must not be used in any action or proceeding
before
any court or administrative tribunal unless the commission
unemployment agency is a party to or a complainant in the action or
proceeding, or unless used for the prosecution of fraud, civil
proceeding, or other legal proceeding in the programs indicated in
subdivision (2).
(iv) Any report or statement, written or verbal, made by any
person
to the commission, unemployment
agency, any member of the
commission,
unemployment agency, or to any person engaged in
administering
this act is a privileged communication;
, and a
person,
firm, or corporation shall is
not be held liable for
slander or libel on account of a report or statement. The records
and
reports in the custody of the commission shall unemployment
agency must be available for examination by the employer or
employee affected.
(v) Subject to restrictions that the commission unemployment
agency
prescribes by rule, information in the
commission's its
possession may be made available to any agency of this state, any
other state, or any federal agency charged with the administration
of an unemployment compensation law or the maintenance of a system
of
public employment offices; the bureau of internal revenue Bureau
of
Internal Revenue of the United States department
of the
treasury;
Department of the Treasury; the bureau of the census
Bureau
of the Census of the economics and
statistics administration
Economics and Statistics Administration of the United States
department
of commerce; Department of
Commerce; or the social
security
administration of the United States department of health
and
human services.United States
Social Security Administration.
(vi) Information obtained in connection with the
administration of this act may be made available to persons or
agencies for purposes appropriate to the operation of a public
employment service or unemployment compensation program. Subject to
restrictions
that the commission it prescribes by rule, the
commission
unemployment agency may also make that information
available to agencies of other states that are responsible for the
administration of public assistance to unemployed workers; to the
departments of this state; and to federal, state, and local law
enforcement agencies in connection with a criminal investigation
involving
the health, safety, or welfare of the public. Information
so
The information released shall must be used only for
purposes
not inconsistent with the purposes of this act. The information
shall
must only be released upon assurance by the entity
receiving
the information that it will reimburse the cost of providing the
information and will not disclose the information except to the
individual or employer that is the subject of the information, an
attorney or agent of the individual or employer, or a prosecuting
authority for or on behalf of the entity receiving the information.
(vii) Upon request, the commission unemployment agency shall
furnish to any agency of the United States charged with the
administration of public works or assistance through public
employment, and may furnish to any state agency similarly charged,
the name, address, ordinary occupation, and employment status of
each recipient of benefits and the recipient's rights to further
benefits under this act.
(viii) Subject to restrictions the commission it prescribes,
by
rule or otherwise, the commission unemployment agency may also
make information that it obtains available for use in connection
with research projects of a public service nature or for course or
training program planning or evaluation to a college, university,
or
community college, or
workforce development agency or to an
agency of this state that is acting as a contractor or agent of a
public official and conducting research that assists the public
official in carrying out the duties of the office. The unemployment
agency shall implement an online system to identify the information
that it collects that may be made available to colleges,
universities, community colleges, and workforce development
agencies and to assist them in the application process required to
gain access to that information. A person associated with those
institutions or agencies or an agency of this state shall not
disclose
the information in any a manner that would reveal the
identity
of any an individual or employing unit from or concerning
whom
the information was obtained by the commission. unemployment
agency.
The unemployment insurance agency
shall enter into a
written, enforceable agreement with the public official or an
employee of the college, university, community college, or
workforce development agency for a period of not more than 10 years
that holds the public official or employee responsible for ensuring
that
the agent or contractor maintains the confidentiality of the
information is maintained. If the agreement is violated, the
agreement
shall must be terminated and the public official or
employee may be subject to penalties equivalent to those that apply
under section 54(f) to a person associated with a college,
university, community college, workforce development agency, or
public agency who discloses confidential information.
(ix) The commission unemployment agency may request the
comptroller
Comptroller of the currency Currency of
the United
States to cause an examination of the correctness of any return or
report of any national banking association rendered under this act,
and may, in connection with the request, transmit the report or
return
to the comptroller Comptroller
of the currency Currency of
the United States as provided in section 3305(c) of the internal
revenue code of 1986, 26 USC 3305(c).
(2)
The commission unemployment
agency shall disclose to
qualified requesting agencies, upon request, with respect to an
identified individual, information in its records pertaining to the
individual's name; social security number; gross wages paid during
each quarter; the name, address, and federal and state employer
identification number of the individual's employer; any other wage
information; whether an individual is receiving, has received, or
has applied for unemployment benefits; the amount of unemployment
benefits the individual is receiving or is entitled to receive; the
individual's current or most recent home address; whether the
individual has refused an offer of work and if so a description of
the job offered including the terms, conditions, and rate of pay;
and
any other information which that
the qualified requesting
agency considers useful in verifying eligibility for, and the
amount of, benefits. For purposes of this subdivision, "qualified
requesting agency" means any state or local child support
enforcement agency responsible for enforcing child support
obligations under a plan approved under part d of title IV of the
social security act, 42 USC 651 to 669b; the United States
department
of health and human services Social
Security
Administration for purposes of establishing or verifying
eligibility or benefit amounts under titles II and XVI of the
social security act, 42 USC 401 to 434 and 42 USC 1381 to 1383f;
the
United States department of agriculture Department of
Agriculture for the purposes of determining eligibility for, and
amount of, benefits under the food stamp program established under
the
food stamp act of 1977, 7 USC 2011 to 2036; 2036c; and
any
other state or local agency of this or any other state responsible
for administering the following programs:
(i) The aid to families with dependent children program under
part a of title IV of the social security act, 42 USC 601 to 619.
(ii) The medicaid Medicaid program under title
XIX of the
social
security act, 42 USC 1396 to 1396v.1396w-5.
(iii) The unemployment compensation program under section 3304
of the internal revenue code of 1986, 26 USC 3304.
(iv) The food stamp program under the food stamp act of 1977,
7
USC 2011 to 2036.2036c.
(v) Any state program under a plan approved under title I, X,
XIV, or XVI of the social security act, 42 USC 301 to 306, 42 USC
1201 to 1206, 42 USC 1351 to 1355, and 42 USC 1381 to 1383f.
(vi) Any program administered under the social welfare act,
1939 PA 280, MCL 400.1 to 400.119b.
The
information shall must be disclosed only if the qualified
requesting
agency has executed an agreement with the commission
unemployment
agency to obtain the information and if
the
information is requested for the purpose of determining the
eligibility of applicants for benefits, or the type and amount of
benefits for which applicants are eligible, under any of the
programs listed above or under title II and XVI of the social
security act, 42 USC 401 to 434 and 42 USC 1381 to 1383f; for
establishing and collecting child support obligations from, and
locating individuals owing such obligations that are being enforced
under a plan described in section 454 of the social security act,
42 USC 654; or for investigating or prosecuting alleged fraud under
any of these programs.
The
commission unemployment
agency shall cooperate with the
this state's department of health and human services in
establishing the computer data matching system authorized in
section 83 of the social welfare act, 1939 PA 280, MCL 400.83, to
transmit the information requested on at least a quarterly basis.
The
information shall must not be released unless the qualified
requesting
agency agrees to reimburse the commission unemployment
agency for the costs incurred in furnishing the information.
In addition to the requirements of this section, except as
later provided in this subdivision, all other requirements with
respect to confidentiality of information obtained in the
administration of this act apply to the use of the information by
the officers and employees of the qualified requesting agencies,
and the sanctions imposed under this act for improper disclosure of
the information apply to those officers and employees. A qualified
requesting agency may redisclose information only to the individual
who is the subject of the information, an attorney or other duly
authorized agent representing the individual if the information is
needed in connection with a claim for benefits against the
requesting agency, or any criminal or civil prosecuting authority
acting for or on behalf of the requesting agency.
The
commission is authorized to unemployment
agency may enter
into an agreement with any qualified requesting agency for the
purposes described in this subdivision. The agreement or agreements
shall
must comply with all federal laws and regulations
applicable
to
such those agreements.
(3)
The commission unemployment
agency shall enable the United
States
department of health and human services Department of Health
and Human Services to obtain prompt access to any wage and
unemployment benefit claims information, including any information
that may be useful in locating an absent parent or an absent
parent's
employer , for
purposes of section 453 of the social
security act, 42 USC 653, or in carrying out the child support
enforcement program under title IV of the social security act, 42
USC
601 to 679b. Access 679c.
The unemployment agency shall not
provide
the requesting agency access to the
information shall not
be
provided unless the requesting
agency agrees to reimburse the
commission
unemployment agency for the costs incurred in furnishing
the information.
(4) Upon request accompanied by presentation of a consent to
the
release of information signed by an individual, the commission
unemployment
agency shall disclose to the United
States department
of
housing and urban development, Department
of Housing and Urban
Development, any state or local public housing agency, or an entity
contracting with a state or local public housing agency to provide
public housing, or any other agency responsible for verifying an
applicant's or participant's eligibility for, or level of benefits
in, any housing assistance program administered by the United
States
department of housing and urban development, Department of
Housing
and Urban Development, the name; ,
address; ,
wage
information; ,
whether an individual is receiving,
has received, or
has
applied for unemployment benefits;
, and the amount of
unemployment benefits the individual is receiving or is entitled to
receive
under this act. This information shall must be used only to
determine an individual's eligibility for benefits or the amount of
benefits to which an individual is entitled under a housing
assistance
program of the United States department of housing and
urban
development. Department of
Housing and Urban Development. The
information
unemployment agency shall not be released release the
information unless the requesting agency agrees to reimburse the
commission
unemployment agency for the costs incurred in furnishing
the information. For purposes of this subdivision, "public housing
agency" means an agency described in section 3(b)(6) of the United
States housing act of 1937, 42 USC 1437a(b)(6).
(5)
The commission unemployment
agency may make available to
the department of treasury information collected for the income and
eligibility verification system begun on October 1, 1988 for the
purpose of detecting potential tax fraud in other areas.
(6) A recipient of confidential information under this act
shall use the disclosed information only for purposes authorized by
law and consistent with an agreement entered into with the
unemployment
insurance agency. The recipient shall not redisclose
the information to any other individual or entity without the
written
permission of the unemployment insurance agency.
(c)
The commission unemployment
agency may enter into
agreements with the appropriate agencies of other states or the
federal
government whereby under
which potential rights to benefits
accumulated under the unemployment compensation laws of other
states or of the federal government, or both, may constitute the
basis for the payment of benefits through a single appropriate
agency
under plans that the commission unemployment
agency finds
will be fair and reasonable to all affected interests and will not
result in substantial loss to the unemployment compensation fund.
(d)(1)
The commission unemployment
agency may enter into
reciprocal agreements with the appropriate agencies of other states
or
of the federal government adjusting that adjust the collection
and payment of contributions by employers with respect to
employment not localized within this state.
(2)
The commission unemployment
agency may enter into
reciprocal agreements with agencies of other states administering
unemployment
compensation , whereby under which contributions
paid
by an employer to any other state may be received by the other
state as an agent acting for and on behalf of this state to the
same extent as if the contributions had been paid directly to this
state if the payment is remitted to this state. Contributions so
received
by another state shall be are
considered contributions,
required and paid under this act as of the date the contributions
were
received by the other state. The commission unemployment
agency may collect contributions in a like manner for agencies of
other states administering unemployment compensation and remit the
contributions to the agencies under the terms of the reciprocal
agreements.
(e)
The commission unemployment
agency may make the this
state's records relating to the administration of this act
available
and may furnish to the railroad retirement board Railroad
Retirement Board or any other state or federal agency administering
an
unemployment compensation law, at the expense of that board ,
state,
or agency, copies of the records as
the railroad retirement
board
Railroad Retirement Board considers necessary for its
purpose.
(f)
The commission unemployment
agency may cooperate with or
enter into agreements with any agency of another state or of the
United States charged with the administration of any unemployment
insurance or public employment service law.
The
commission unemployment
agency may investigate, secure,
and transmit information, make available services and facilities,
and exercise other powers provided in this act with respect to the
administration of this act as it considers necessary or appropriate
to facilitate the administration of any unemployment compensation
or public employment service law, and may accept and utilize
information, services, and facilities made available to this state
by the agency charged with the administration of any other
unemployment compensation or public employment service law.
On request of an agency that administers an employment
security law of another state or a foreign government and that has
found, in accordance with that law, that a claimant is liable to
repay
benefits received under that law, the commission unemployment
agency may collect the amount of the benefits from the claimant to
be
refunded to the that agency.
In
any a case in which under this subsection a claimant is
liable
to repay any an amount to the agency of another state or a
foreign government, the amount may be collected by civil action in
the
name of the commission unemployment
agency acting as agent for
the
that agency. Court costs shall must be
paid or guaranteed by
the agency of that state.
To the extent permissible under the laws and constitution of
the
United States, the commission unemployment
agency may enter
into
or cooperate in arrangements whereby under which facilities
and services provided under this act and facilities and services
provided under the unemployment compensation law of Canada may be
utilized for the taking of claims and the payment of benefits under
the unemployment compensation law of this state or under a similar
law of Canada.
Any employer who is not a resident of this state and who
exercises the privilege of having 1 or more individuals perform
service for him or her within this state, and any resident employer
who exercises that privilege and thereafter leaves this state, is
considered to have appointed the secretary of state as his or her
agent and attorney for the acceptance of process in any civil
action
under this act. In instituting the an action, the commission
unemployment agency shall cause process or notice to be filed with
the
secretary of state, and the service shall be is sufficient
and
shall
be of the same force and validity
as if served upon the
nonresident or absent employer personally within this state. The
commission
unemployment agency shall immediately shall send a
notice
and copy of the service of process or notice ,
together with
a
copy thereof, by certified mail,
return receipt requested, to the
employer at his or her last known address. The return receipt, the
commission's
unemployment agency's affidavit of compliance with
this
section, and a copy of the notice of service shall must be
attached to the original of the process filed in the court in which
the civil action is pending.
The courts of this state shall recognize and enforce
liabilities, as provided in this act, for unemployment compensation
contributions, penalties, and interest imposed by other states that
extend a like comity to this state.
The attorney general may commence action in the appropriate
court of any other state or any other jurisdiction of the United
States
by and in the name of the commission unemployment agency to
collect unemployment compensation contributions, penalties, and
interest finally determined, redetermined, or decided under this
act to be legally due to this state. The officials of other states
that extend a like comity to this state may sue in the courts of
this state for the collection of unemployment compensation
contributions, penalties, and interest, the liability for which has
been similarly established under the laws of the other state or
jurisdiction. A certificate by the secretary of another state under
the great seal of that state attesting the authority of the
official or officials to collect unemployment compensation
contributions, penalties, and interest is conclusive evidence of
that authority.
The attorney general may commence action in this state as
agent for or on behalf of any other state to enforce judgments and
established liabilities for unemployment compensation taxes or
contributions, penalties, and interest due the other state if the
other state extends a like comity to this state.
(g)
The commission unemployment
agency may also enter into
reciprocal agreements with the appropriate and authorized agencies
of
other states or of the federal government whereby under which
remuneration and services that determine entitlement to benefits
under the unemployment compensation law of another state or of the
federal government are considered wages and employment for the
purposes of sections 27 and 46, if the other state or federal
agency
or agency of the federal government has agreed to reimburse
the fund for that portion of benefits paid under this act upon the
basis
of the remuneration and services as the commission
unemployment agency finds will be fair and reasonable as to all
affected interests. A reciprocal agreement may provide that wages
and employment that determine entitlement to benefits under this
act are considered wages or services on the basis of which
unemployment compensation under the law of another state or of the
federal
government is payable; may provide that services performed
by an individual for a single employing unit for which services are
customarily performed by the individual in more than 1 state are
considered services performed entirely within any 1 of the states
in which any part of the individual's service is performed, in
which the individual has his or her residence, or in which the
employing unit maintains a place of business, if there is in
effect, as to those services, an election approved by the agency
charged with the administration of the state's unemployment
compensation law, under which all the services performed by the
individual for the employing unit are considered to be performed
entirely
within the this state; and may provide that the commission
unemployment agency will reimburse other state or federal agencies
charged with the administration of unemployment compensation laws
with
such the reasonable portion of benefits, paid under the law
of
any other state or of the federal government upon the basis of
employment
and wages, as the commission unemployment
agency finds
will be fair and reasonable as to all affected interests.
Reimbursements payable under this subsection are considered
benefits for the purpose of limiting duration of benefits and for
the
purposes of sections 20(a) and 26, and the payments shall be
charged
are chargeable to the contributing employer's experience
account for the purposes of sections 17, 18, 19, and 20, or the
reimbursing employer's account under section 13c, 13g, 13i, or 13l,
as
applicable. Benefits paid under a combined wage plan shall must
be allocated and charged to each employer involved in the quarter
in which the paying state requires reimbursement. Benefits charged
to
this state shall must be allocated to each employer of this
state who has employed the claimant during the base period of the
paying state in the same ratio that the wages earned by the
claimant during the base period of the paying state in the employ
of the employer bears to the total amount of wages earned by the
claimant in the base period of the paying state in the employ of
all
employers of the state. The commission is authorized to
unemployment
agency may make to other state or
federal agencies and
receive from other state or federal agencies reimbursements from or
to
the fund, in accordance with pursuant
to arrangements made under
this section.
(h)
The commission unemployment
agency may enter into any
agreement necessary to cooperate with any agency of the United
States charged with the administration of any program for the
payment of primary or supplemental benefits to individuals recently
discharged
from the military services of the United States , and to
assist in the establishing of eligibility and in the payments of
benefits
under those programs. , and The
unemployment agency may,
for
those purposes, may accept and administer funds made
available
by the federal government and may accept and exercise any delegated
function
under those programs. The commission unemployment agency
shall
not enter into any an agreement providing for, or exercise
any
function connected with, the disbursement of the this state's
unemployment trust fund for purposes not authorized by this act.
(i)
The commission unemployment
agency may enter into
agreements with the appropriate agency of the United States under
which, in accordance with the laws of the United States, the
commission,
unemployment agency, as agent of the United States or
from funds provided by the United States, provides for the payment
of unemployment compensation or unemployment allowances of any
kind, including the payment of any benefits and allowances that are
made available for manpower development, training, retraining,
readjustment,
and relocation. The commission unemployment
agency
may receive and disburse funds from the United States or any
appropriate
agency of the United States in accordance with any such
pursuant to those agreements.
If the federal enactment providing for unemployment
compensation, training allowance, or relocation payments requires
joint
federal-state financing of such those
payments, the
commission
unemployment agency may participate in the programs by
using funds appropriated by the legislature to the extent provided
by
the legislature for such those
programs.
(j)
The commission unemployment
agency shall participate in
any arrangement that provides for the payment of compensation on
the basis of combining an individual's wages and employment covered
under this act with his or her wages and employment covered under
the unemployment compensation laws of other states, if the
arrangement
is approved by the United States secretary of labor
Secretary of Labor in consultation with the state unemployment
compensation agencies as reasonably calculated to assure the prompt
and
full payment of compensation. An arrangement shall must include
provisions for both of the following:
(i) Applying the base period of a single state law to a claim
involving the combining of an individual's wages and employment
covered under 2 or more state unemployment compensation laws.
(ii) Avoiding the duplicate use of wages and employment as a
result of the combining.
(k)
In a proceeding before any court, the commission and the
state
shall be represented by the The
attorney general of this
state or attorneys designated by the attorney general shall
represent the unemployment agency and this state in a proceeding
before any court. Only the attorney general or other attorneys
designated by the attorney general shall act as legal counsel for
the
commission.unemployment
agency.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.