HOUSE BILL No. 5796 March 13, 2002, Introduced by Rep. Woronchak and referred to the Committee on Employment Relations, Training and Safety. A bill to amend 1936 (Ex Sess) PA 1, entitled "Michigan employment security act," by amending section 27 (MCL 421.27), as amended by 1995 PA 181. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 27. (a)(1) When a determination, redetermination, or 2 decision is made that benefits are due an unemployed individual, 3 the benefits shall immediately become payable from the fund and 4 continue to be payable to the unemployed individual, subject to 5 the limitations imposed by the individual's monetary entitlement, 6as long asIF the individual continues to be unemployed and to 7 file claims for benefits, until the determination, redetermina- 8 tion, or decision is reversed, a determination, redetermination, 9 or decision on a new issue holding the individual disqualified or 10 ineligible is made, or, for benefit years beginning before the 06318'01 LAJ 2 1 conversion date prescribed in section 75, a new separation issue 2 arises resulting from subsequent work. 3 (2) Benefits shall be paid in person or by mail through 4 employment offices in accordance with rules promulgated by the 5 commission. 6 (b)(1) Subject to subsection (f), the weekly benefit rate 7 for an individual, with respect to benefit years beginning before 8 the conversion date prescribed in section 75, shall be 67% of the 9 individual's average after tax weekly wage, except that the 10 individual's maximum weekly benefit rate shall not exceed 11$300.00$400.00. However, with respect to benefit years begin- 12 ning after the conversion date as prescribed in section 75, the 13 individual's weekly benefit rate shall be4.1%4.3% of the 14 individual's wages paid in the calendar quarter of the base 15 period in which the individual was paid the highest total wages, 16 plus $6.00 for each dependent as defined in subdivision (3), up 17 to a maximum of 5 dependents, claimed by the individual at the 18 time the individual files a new claim for benefits, except that 19 the individual's maximum weekly benefit rate shall not exceed 20$300.00$400.00. With respect to benefit years beginning on or 21 after October 2, 1983, the weekly benefit rate shall be adjusted 22 to the next lower multiple of $1.00. 23 (2) For benefit years beginning before the conversion date 24 prescribed in section 75, the state average weekly wage for a 25 calendar year shall be computed on the basis of the 12 months 26 ending the June 30 immediately preceding that calendar year. The 27 commission shall prepare a table of weekly benefit rates based on 06318'01 3 1 an "average after tax weekly wage" calculated by subtracting, 2 from an individual's average weekly wage as determined in accord- 3 ance with section 51, a reasonable approximation of the weekly 4 amount required to be withheld by the employer from the remunera- 5 tion of the individual based on dependents and exemptions for 6 income taxes under chapter 24 of subtitle C of the internal reve- 7 nue code of 1986, 26 U.S.C. 3401 to 3406, and under section 351 8 of the income tax act of 1967,Act No. 281 of the Public Acts of91967, being section 206.351 of the Michigan Compiled Laws1967 10 PA 281, MCL 206.351, and for old age and survivor's disability 11 insurance taxes under the federal insurance contributions act, 12 chapter 21 of subtitle C of the internal revenue code of 1986, 26 13 U.S.C. 3128. For purposes of applying the table to an 14 individual's claim, a dependent shall be as defined in 15 subdivision (3). The table applicable to an individual's claim 16 shall be the table reflecting the number of dependents claimed by 17 the individual under subdivision (3). The commission shall 18 adjust the tables based on changes in withholding schedules pub- 19 lished by the United States department of treasury, internal rev- 20 enue service, and by the department of treasury. The number of 21 dependents allowed shall be determined with respect to each week 22 of unemployment for which an individual is claiming benefits. 23 (3) For benefit years beginning before the conversion date 24 prescribed in section 75, a dependent means any of the following 25 persons who is receiving and for at least 90 consecutive days 26 immediately preceding the week for which benefits are claimed, 27 or, in the case of a dependent husband, wife, or child, for the 06318'01 4 1 duration of the marital or parental relationship, if the 2 relationship has existed less than 90 days, has received more 3 than half the cost of his or her support from the individual 4 claiming benefits: 5 (a) A child, including stepchild, adopted child, or grand- 6 child of the individual who is under 18 years of age, or 18 years 7 of age or over if, because of physical or mental infirmity, the 8 child is unable to engage in a gainful occupation, or is a 9 full-time student as defined by the particular educational insti- 10 tution, at a high school, vocational school, community or junior 11 college, or college or university and has not attained the age of 12 22. 13 (b) The husband or wife of the individual. 14 (c) The legal father or mother of the individual if that 15 parent is either more than 65 years of age or is permanently dis- 16 abled from engaging in a gainful occupation. 17 (d) A brother or sister of the individual if the brother or 18 sister is orphaned or the living parents are dependent parents of 19 an individual, and the brother or sister is under 18 years of 20 age, or 18 years of age or over if, because of physical or mental 21 infirmity, the brother or sister is unable to engage in a gainful 22 occupation, or is a full-time student as defined by the particu- 23 lar educational institution, at a high school, vocational school, 24 community or junior college, or college or university and is less 25 than 22 years of age. 26 (4) For benefit years beginning after the conversion date 27 prescribed in section 75, a dependent means any of the following 06318'01 5 1 persons who received for at least 90 consecutive days immediately 2 preceding the first week of the benefit year or, in the case of a 3 dependent husband, wife, or child, for the duration of the mari- 4 tal or parental relationship if the relationship existed less 5 than 90 days before the beginning of the benefit year, has 6 received more than 1/2 the cost of his or her support from the 7 individual claiming the benefits: 8 (a) A child, including stepchild, adopted child, or grand- 9 child of the individual who is under 18 years of age, or 18 years 10 of age and over if, because of physical or mental infirmity, the 11 child is unable to engage in a gainful occupation, or is a 12 full-time student as defined by the particular educational insti- 13 tution, at a high school, vocational school, community or junior 14 college, or college or university and has not attained the age of 15 22. 16 (b) The husband or wife of the individual. 17 (c) The legal father or mother of the individual if that 18 parent is either more than 65 years of age or is permanently dis- 19 abled from engaging in a gainful occupation. 20 (d) A brother or sister of the individual if the brother or 21 sister is orphaned or the living parents are dependent parents of 22 an individual, and the brother or sister is under 18 years of 23 age, or 18 years of age and over if, because of physical or 24 mental infirmity, the brother or sister is unable to engage in a 25 gainful occupation, or is a full-time student as defined by the 26 particular educational institution, at a high school, vocational 06318'01 6 1 school, community or junior college, or college or university and 2 is less than 22 years of age. 3 (5) For benefit years beginning before the conversion date 4 prescribed in section 75, dependency status of a dependent, child 5 or otherwise, once established or fixed in favor of an individual 6 continues during the individual's benefit year until terminated. 7 Dependency status of a dependent terminates at the end of the 8 week in which the dependent ceases to be an individual described 9 in subdivision (3)(a), (b), (c), or (d) because of age, death, or 10 divorce. For benefit years beginning after the conversion date 11 prescribed in section 75, the number of dependents established 12 for an individual at the beginning of the benefit year shall 13 remain in effect during the entire benefit year. 14 (6) For benefit years beginning before the conversion date 15 prescribed in section 75, failure on the part of an individual, 16 due to misinformation or lack of information, to furnish all 17 information material for determination of the number of the 18 individual's dependents when the individual files a claim for 19 benefits with respect to a week shall be considered good cause 20 for the issuance of a redetermination as to the amount of bene- 21 fits based on the number of the individual's dependents as of the 22 beginning date of that week. Dependency status of a dependent, 23 child or otherwise, once established or fixed in favor of a 24 person is not transferable to or usable by another person with 25 respect to the same week. 26 For benefit years beginning after the conversion date as 27 prescribed in section 75, failure on the part of an individual, 06318'01 7 1 due to misinformation or lack of information, to furnish all 2 information material for determination of the number of the 3 individual's dependents shall be considered good cause for the 4 issuance of a redetermination as to the amount of benefits based 5 on the number of the individual's dependents as of the beginning 6 of the benefit year. 7 (c) Subject to subsection (f), all of the following apply to 8 eligible individuals: 9 (1) Each eligible individual shall be paid a weekly benefit 10 rate with respect to the week for which the individual earns or 11 receives no remuneration. Notwithstanding the definition of week 12as containedin section 50, if within 2 consecutive weeks in 13 which an individual was not unemployed within the meaning of sec- 14 tion 48 there was a period of 7 or more consecutive days for 15 which the individual did not earn or receive remuneration, that 16 period shall be considered a week for benefit purposes under this 17 act if a claim for benefits for that period is filed not later 18 than 30 dayssubsequent toAFTER the end of the period. 19 (2) Each eligible individual shall have his or her weekly 20 benefit rate reduced with respect to each week in which the indi- 21 vidual earns or receives remuneration at the rate of 50 cents for 22 each whole $1.00 of remuneration earned or received during that 23 week. 24 (3) An individual who receives or earns partial remuneration 25 may not receive a total of benefits and earnings that exceeds 26 1-1/2 times his or her weekly benefit amount. For each dollar of 27 total benefits and earnings that exceeds 1-1/2 times the 06318'01 8 1 individual's weekly benefit amount, benefits shall be reduced by 2 $1.00. 3 (4) If the reduction in a claimant's benefit rate for a week 4 in accordance with subparagraph (2) or (3) results in a benefit 5 rate greater than zero for that week, the claimant's balance of 6 weeks of benefit payments will be reduced by 1 week. 7 (5) All remuneration for work performed during a shift that 8 terminates on 1 day but that began on the preceding day shall be 9 considered to have been earned by the eligible individual on the 10 preceding day. 11 (d) For benefit years beginning before the conversion date 12 prescribed in section 75, and subject to subsection (f) and this 13 subsection, the amount of benefits to which an individual who is 14 otherwise eligible is entitled during a benefit year from an 15 employer with respect to employment during the base period is the 16 amount obtained by multiplying the weekly benefit rate with 17 respect to that employment by 3/4 of the number of credit weeks 18 earned in the employment. For the purpose of this subsection and 19 section 20(c), if the resultant product is not an even multiple 20 of 1/2 the weekly benefit rate, the product shall be raised to an 21 amount equal to the next higher multiple of 1/2 the weekly bene- 22 fit rate, and, for an individual who was employed by only 1 23 employer in the individual's base period and earned 34 credit 24 weeks with that employer, the product shall be raised to the next 25 higher multiple of the weekly benefit rate. The maximum amount 26 of benefits payable to an individual within a benefit year, with 27 respect to employment by an employer, shall not exceed 26 times 06318'01 9 1 the weekly benefit rate with respect to that employment. The 2 maximum amount of benefits payable to an individual within a ben- 3 efit year shall not exceed the amount to which the individual 4 would be entitled for 26 weeks of unemployment in which remunera- 5 tion was not earned or received. The limitation of total bene- 6 fits set forth in this subsection does not apply to claimants 7 declared eligible for training benefits in accordance with sub- 8 section (g). For benefit years beginning after the conversion 9 date prescribed in section 75, and subject to subsection (f) and 10 this subsection, the maximum benefit amount payable to an indi- 11 vidual in a benefit year for purposes of this section and 12 section 20(c) is the number of weeks of benefits payable to an 13 individual during the benefit year, multiplied by the 14 individual's weekly benefit rate. The number of weeks of bene- 15 fits payable to an individual shall be calculated by taking 40% 16 of the individual's base period wages and dividing the result by 17 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, not more than 26 weeks of benefits 20 or less than 14 weeks of benefits shall be payable to an individ- 21 ual in a benefit year. The limitation of total benefits set 22 forth in this subsection shall not apply to claimants declared 23 eligible for training benefits in accordance with 24 subsection (g). 25 (e) When a claimant dies or is judicially declared insane or 26 mentally incompetent, unemployment compensation benefits accrued 27 and payable to that person for weeks of unemployment before 06318'01 10 1 death, insanity, or incompetency, but not paid, shall become due 2 and payable to the person who is the legal heir or guardian of 3 the claimant or to any other person found by the commission to be 4 equitably entitled to the benefits by reason of having incurred 5 expense in behalf of the claimant for the claimant's burial or 6 other necessary expenses. 7 (f)(1) For benefit years beginning before the conversion 8 date prescribed in section 75, and notwithstanding any inconsis- 9 tent provisions of this act, the weekly benefit rate of each 10 individual who is receiving or will receive a "retirement 11 benefit", as defined in subdivision (4), shall be adjusted as 12 provided in subparagraphs (a), (b), and (c). However, an 13 individual's extended benefit account and an individual's weekly 14 extended benefit rate under section 64 shall be established with- 15 out reduction under this subsection unless subdivision (5) is in 16 effect. Except as otherwise provided in this subsection, all 17 other provisions of this act continue to apply in connection with 18 the benefit claims of those retired persons. 19 (a) If and to the extent that unemployment benefits payable 20 under this act would be chargeable to an employer who has con- 21 tributed to the financing of a retirement plan under which the 22 claimant is receiving or will receive a retirement benefit yield- 23 ing a pro rata weekly amount equal to or larger than the 24 claimant's weekly benefit rate as otherwise established under 25 this act, the claimant shall not receive unemployment benefits 26 that would be chargeable to the employer under this act. 06318'01 11 1 (b) If and to the extent that unemployment benefits payable 2 under this act would be chargeable to an employer who has 3 contributed to the financing of a retirement plan under which the 4 claimant is receiving or will receive a retirement benefit yield- 5 ing a pro rata weekly amount less than the claimant's weekly ben- 6 efit rate as otherwise established under this act, then the 7 weekly benefit rate otherwise payable to the claimant and charge- 8 able to the employer under this act shall be reduced by an amount 9 equal to the pro rata weekly amount, adjusted to the next lower 10 multiple of $1.00, which the claimant is receiving or will 11 receive as a retirement benefit. 12 (c) If the unemployment benefit payable under this act would 13 be chargeable to an employer who has not contributed to the 14 financing of a retirement plan under which the claimant is 15 receiving or will receive a retirement benefit, then the weekly 16 benefit rate of the claimant as otherwise established under this 17 act shall not be reduced due to receipt of a retirement benefit. 18 (d) If the unemployment benefit payable under this act is 19 computed on the basis of multiemployer credit weeks and a portion 20 of the benefit is allocable under section 20(e) to an employer 21 who has contributed to the financing of a retirement plan under 22 which the claimant is receiving or will receive a retirement ben- 23 efit, the adjustments required by subparagraph (a) or (b) apply 24 only to that portion of the weekly benefit rate that would other- 25 wise be allocable and chargeable to the employer. 26 (2) If an individual's weekly benefit rate under this act 27 was established before the period for which the individual first 06318'01 12 1 receives a retirement benefit, any benefits received after a 2 retirement benefit becomes payable shall be determined in accord- 3 ance with the formula stated in this subsection. 4 (3) When necessary to assure prompt payment of benefits, the 5 commission shall determine the pro rata weekly amount yielded by 6 an individual's retirement benefit based on the best information 7 currently available to it. In the absence of fraud, a determina- 8 tion shall not be reconsidered unless it is established that the 9 individual's actual retirement benefit in fact differs from the 10 amount determined by $2.00 or more per week. The reconsideration 11 shall apply only to benefits as may be claimed after the informa- 12 tion on which the reconsideration is based was received by the 13 commission. 14 (4)(a) As used in this subdivision, "retirement benefit" 15 means a benefit, annuity, or pension of any type or that part 16 thereof that is described in subparagraph (b) that is: 17 (i) Provided as an incident of employment under an estab- 18 lished retirement plan, policy, or agreement, including federal 19 social security if subdivision (5) is in effect. 20 (ii) Payable to an individual because the individual has 21 qualified on the basis of attained age, length of service, or 22 disability, whether or not the individual retired or was retired 23 from employment. Amounts paid to individuals in the course of 24 liquidation of a private pension or retirement fund because of 25 termination of the business or of a plant or department of the 26 business of the employer involved shall not be considered to be 27 retirement benefits. 06318'01 13 1 (b) If a benefit as described in subparagraph (a) is payable 2 or paid to the individual under a plan to which the individual 3 has contributed: 4 (i) Less than half of the cost of the benefit, then only 5 half of the benefit shall be treated as a retirement benefit. 6 (ii) Half or more of the cost of the benefit, then none of 7 the benefit shall be treated as a retirement benefit. 8 (c) The burden of establishing the extent of an individual's 9 contribution to the cost of his or her retirement benefit for the 10 purpose of subparagraph (b) is upon the employer who has contrib- 11 uted to the plan under which a benefit is provided. 12 (5) Notwithstanding any other provision of this subsection, 13 for any week that begins after March 31, 1980, and with respect 14 to which an individual is receiving a governmental or other pen- 15 sion and claiming unemployment compensation, the weekly benefit 16 amount payable to the individual for those weeks shall be 17 reduced, but not below zero, by the entire prorated weekly amount 18 of any governmental or other pension, retirement or retired pay, 19 annuity, or any other similar payment that is based on any previ- 20 ous work of the individual. This reduction shall be made only if 21 it is required as a condition for full tax credit against the tax 22 imposed by the federal unemployment tax act, chapter 23 of 23 subtitle C of the internal revenue code of 1986, 26 U.S.C. 3301 24 to 3311. 25 (6) For benefit years beginning after the conversion date 26 prescribed in section 75, notwithstanding any inconsistent 27 provisions of this act, the weekly benefit rate of each 06318'01 14 1 individual who is receiving or will receive a retirement benefit, 2 as defined in subdivision (4), shall be adjusted as provided in 3 subparagraphs (a), (b), and (c). However, an individual's 4 extended benefit account and an individual's weekly extended ben- 5 efit rate under section 64 shall be established without reduction 6 under this subsection, unless subdivision (5) is in effect. 7 Except as otherwise provided in this subsection, all the other 8 provisions of this act shall continue to be applicable in connec- 9 tion with the benefit claims of those retired persons. 10 (a) If any base period or chargeable employer has contrib- 11 uted to the financing of a retirement plan under which the claim- 12 ant is receiving or will receive a retirement benefit yielding a 13 pro rata weekly amount equal to or larger than the claimant's 14 weekly benefit rate as otherwise established under this act, the 15 claimant shall not receive unemployment benefits. 16 (b) If any base period employer or chargeable employer has 17 contributed to the financing of a retirement plan under which the 18 claimant is receiving or will receive a retirement benefit yield- 19 ing a pro rata weekly amount less than the claimant's weekly ben- 20 efit rate as otherwise established under this act, then the 21 weekly benefit rate otherwise payable to the claimant shall be 22 reduced by an amount equal to the pro rata weekly amount, 23 adjusted to the next lower multiple of $1.00, which the claimant 24 is receiving or will receive as a retirement benefit. 25 (c) If no base period or separating employer has contributed 26 to the financing of a retirement plan under which the claimant is 27 receiving or will receive a retirement benefit, then the weekly 06318'01 15 1 benefit rate of the claimant as otherwise established under this 2 act shall not be reduced due to receipt of a retirement benefit. 3 (g) Notwithstanding any other provision of this act, an 4 individual pursuing vocational training or retraining pursuant to 5 section 28(2) who has exhausted all benefits available under sub- 6 section (d) may be paid for each week of approved vocational 7 training pursued beyond the date of exhaustion a benefit amount 8 in accordance with subsection (c), but not in excess of the 9 individual's most recent weekly benefit rate. However, an indi- 10 vidual shall not be paid training benefits totaling more than 18 11 times the individual's most recent weekly benefit rate. The 12 expiration or termination of a benefit year shall not stop or 13 interrupt payment of training benefits if the training for which 14 the benefits were granted began before expiration or termination 15 of the benefit year. 16 (h) A payment of accrued unemployment benefits shall not be 17 made to an eligible individual or in behalf of that individual as 18 provided in subsection (e) more than 6 years after the ending 19 date of the benefit year covering the payment or 2 calendar years 20 after the calendar year in which there is final disposition of a 21 contested case, whichever is later. 22 (i) Benefits based on service in employment described in 23 section 42(8), (9), and (10) are payable in the same amount, on 24 the same terms, and subject to the same conditions as compensa- 25 tion payable on the basis of other service subject to this act, 26 except that: 06318'01 16 1 (1) With respect to service performed in an instructional, 2 research, or principal administrative capacity for an institution 3 of higher education as defined in section 53(2), or for an educa- 4 tional institution other than an institution of higher education 5 as defined in section 53(3), benefits shall not be paid to an 6 individual based on those services for any week of unemployment 7 beginning after December 31, 1977 that commences during the 8 period between 2 successive academic years or during a similar 9 period between 2 regular terms, whether or not successive, or 10 during a period of paid sabbatical leave provided for in the 11 individual's contract, to an individual if the individual per- 12 forms the service in the first of the academic years or terms and 13 if there is a contract or a reasonable assurance that the indi- 14 vidual will perform service in an instructional, research, or 15 principal administrative capacity for an institution of higher 16 education or an educational institution other than an institution 17 of higher education in the second of the academic years or terms, 18 whether or not the terms are successive. 19 (2) With respect to service performed in other than an 20 instructional, research, or principal administrative capacity for 21 an institution of higher education as defined in section 53(2) or 22 for an educational institution other than an institution of 23 higher education as defined in section 53(3), benefits shall not 24 be paid based on those services for any week of unemployment 25 beginning after December 31, 1977 that commences during the 26 period between 2 successive academic years or terms to any 27 individual if that individual performs the service in the first 06318'01 17 1 of the academic years or terms and if there is a reasonable 2 assurance that the individual will perform the service for an 3 institution of higher education or an educational institution 4 other than an institution of higher education in the second of 5 the academic years or terms. 6 (3) With respect to any service described in subdivision (1) 7 or (2), benefits shall not be paid to an individual based upon 8 service for any week of unemployment that commences during an 9 established and customary vacation period or holiday recess if 10 the individual performs the service in the period immediately 11 before the vacation period or holiday recess and there is a con- 12 tract or reasonable assurance that the individual will perform 13 the service in the period immediately following the vacation 14 period or holiday recess. 15 (4) If benefits are denied to an individual for any week 16 solely as a result of subdivision (2) and the individual was not 17 offered an opportunity to perform in the second academic year or 18 term the service for which reasonable assurance had been given, 19 the individual is entitled to a retroactive payment of benefits 20 for each week for which the individual had previously filed a 21 timely claim for benefits. An individual entitled to benefits 22 under this subdivision may apply for those benefits by mail in 23 accordance with R 421.210 as promulgated by the commission. 24(5) The amendments to subdivision (2) made by Act No. 21925of the Public Acts of 1983 apply to all claims for unemployment26compensation that are filed on and after October 31, 1983.27However, the amendments are retroactive to September 5, 1982 only06318'01 18 1if, as a condition for full tax credit against the tax imposed by2the federal unemployment tax act, chapter 23 of subtitle C of the3internal revenue code of 1986, 26 U.S.C. 3301 to 3311, the United4States secretary of labor determines that retroactivity is5required by federal law.6 (5)(6) Notwithstanding subdivision (2), on and after April71, 1984 benefitsBENEFITS based upon services in other than an 8 instructional, research, or principal administrative capacity for 9 an institution of higher education shall not be denied for any 10 week of unemployment commencing during the period between 2 suc- 11 cessive academic years or terms solely because the individual had 12 performed the service in the first of the academic years or terms 13 and there is reasonable assurance that the individual will per- 14 form the service for an institution of higher education or an 15 educational institution other than an institution of higher edu- 16 cation in the second of the academic years or terms, unless a 17 denial is required as a condition for full tax credit against the 18 tax imposed by the federal unemployment tax act, chapter 23 of 19 subtitle C of the internal revenue code of 1986, 26 U.S.C. 3301 20 to 3311. 21 (6)(7)For benefit years established before the conver- 22 sion date prescribed in section 75, and notwithstanding subdivi- 23 sions (1), (2), and (3), the denial of benefits does not prevent 24 an individual from completing requalifying weeks in accordance 25 with section 29(3) nor does the denial prevent an individual from 26 receiving benefits based on service with an employer other than 27 an educational institution for any week of unemployment occurring 06318'01 19 1 between academic years or terms, whether or not successive, or 2 during an established and customary vacation period or holiday 3 recess, even though the employer is not the most recent charge- 4 able employer in the individual's base period. However, in that 5 case section 20(b) applies to the sequence of benefit charging, 6 except for the employment with the educational institution, and 7 section 50(b) applies to the calculation of credit weeks. When a 8 denial of benefits under subdivision (1) no longer applies, bene- 9 fits shall be charged in accordance with the normal sequence of 10 charging as provided in section 20(b). 11 (7)(8)For benefit years beginning after the conversion 12 date prescribed in section 75, and notwithstanding subdivisions 13 (1), (2), and (3), the denial of benefits shall not prevent an 14 individual from completing requalifying weeks in accordance with 15 section 29(3) nor shall the denial prevent an individual from 16 receiving benefits based on service with another base period 17 employer other than an educational institution for any week of 18 unemployment occurring between academic years or terms, whether 19 or not successive, or during an established and customary vaca- 20 tion period or holiday recess. However, when benefits are paid 21 based on service with 1 or more base period employers other than 22 an educational institution, the individual's weekly benefit rate 23 shall be calculated in accordance with subsection (b)(1) but 24 during the denial period the individual's weekly benefit payment 25 shall be reduced by the portion of the payment attributable to 26 base period wages paid by an educational institution and the 27 account or experience account of the educational institution 06318'01 20 1 shall not be charged for benefits payable to the individual. 2 When a denial of benefits under subdivision (1) is no longer 3 applicable, benefits shall be paid and charged on the basis of 4 base period wages with each of the base period employers includ- 5 ing the educational institution. 6 (8)(9)For the purposes of this subsection, "academic 7 year" means that period, as defined by the educational institu- 8 tion, when classes are in session for that length of time 9 required for students to receive sufficient instruction or earn 10 sufficient credit to complete academic requirements for a partic- 11 ular grade level or to complete instruction in a noncredit 12 course. 13 (9)(10) BenefitsIN ACCORDANCE WITH SUBDIVISIONS (1), 14 (2), AND (3), BENEFITS FOR ANY WEEK OF UNEMPLOYMENT shall be 15 denied, as provided in subdivisions (1), (2), and (3), for any16week of unemployment beginning on and after April 1, 1984,to an 17 individual who performedthoseservices DESCRIBED IN 18 SUBDIVISION (1), (2), OR (3) in an educational institution while 19 in the employ of an educational service agency. For the purpose 20 of this subdivision, "educational service agency" means a govern- 21 mental agency or governmental entity that is established and 22 operated exclusively for the purpose of providing the services to 23 1 or more educational institutions. 24 (j)For weeks of unemployment beginning after December 31,251977, benefitsBENEFITS shall not be paid to an individual on 26 the basis of any base period services, substantially all of which 27 consist of participating in sports or athletic events or training 06318'01 21 1 or preparing to so participate, for a week that commences during 2 the period between 2 successive sport seasons or similar periods 3 if the individual performed the services in the first of the sea- 4 sons or similar periods and there is a reasonable assurance that 5 the individual will perform the services in the later of the sea- 6 sons or similar periods. 7 (k)(1)For weeks of unemployment beginning after8December 31, 1977, benefitsBENEFITS shall not be payable on the 9 basis of services performed by an alien unless the alien is an 10 individual who was lawfully admitted for permanent residence at 11 the time the services were performed, was lawfully present for 12 the purpose of performing the services, or was permanently resid- 13 ing in the United States under color of law at the time the serv- 14 ices were performed, including an alien who was lawfully present 15 in the United States undersection 203(a)(7) orsection 16 212(d)(5) of the immigration and nationality act, CHAPTER 477, 66 17 STAT. 182, 8 U.S.C.1153 and1182. 18 (2) Any data or information required of individuals applying 19 for benefits to determine whether benefits are payable because of 20 their alien status are uniformly required from all applicants for 21 benefits. 22 (3) Where an individual whose application for benefits would 23 otherwise be approved, a determination that benefits to that 24 individual are not payable because of the individual's alien 25 status shall not be made except upon a preponderance of the 26 evidence. 06318'01 22 1 (m)(1) An individual filing a new claim for unemployment 2 compensation under this act,after September 30, 1982,at the 3 time of filing the claim, shall disclose whether the individual 4 owes child support obligations as defined in this subsection. If 5 an individual discloses that he or she owes child support obliga- 6 tions and is determined to be eligible for unemployment compensa- 7 tion, the commission shall notify the state or local child sup- 8 port enforcement agency enforcing the obligation that the indi- 9 vidual has been determined to be eligible for unemployment 10 compensation. 11 (2) Notwithstanding section 30, the commission shall deduct 12 and withhold from any unemployment compensation payable to an 13 individual who owes child support obligations by using whichever 14 of the following methods results in the greatest amount: 15 (a) The amount, if any, specified by the individual to be 16 deducted and withheld under this subdivision. 17 (b) The amount, if any, determined pursuant to an agreement 18 submitted to the commission under section 454(19)(B)(i) of part D 19 of title IV of the social security act,chapter 531, 4920Stat. 620,42 U.S.C. 654, by the state or local child support 21 enforcement agency. 22 (c) Any amount otherwise required to besodeducted and 23 withheld from unemployment compensation pursuant to legal pro- 24 cess, as that term is defined in section 462(e) of part D of 25 title IV of the social security act,chapter 531, 49 Stat. 620,26 42 U.S.C. 662, properly served upon the commission. 06318'01 23 1 (3) The amount of unemployment compensation subject to 2 deduction under subdivision (2) is that portion that remains 3 payable to the individual after application of the recoupment 4 provisions of section 62(a) and the reduction provisions of 5 subsections (c) and (f). 6 (4) Any amount deducted and withheld under subdivision (2) 7 shall be paid by the commission to the appropriate state or local 8 child support enforcement agency. 9 (5) Any amount deducted and withheld under subdivision (2) 10 shall be treated for all purposes as if it were paid to the indi- 11 vidual as unemployment compensation and paid by the individual to 12 the state or local child support enforcement agency in satisfac- 13 tion of the individual's child support obligations. 14 (6) This subsection applies only if the state or local child 15 support enforcement agency agrees in writing to reimburse and 16 does reimburse the commission for the administrative costs 17 incurred by the commission under this subsection that are attrib- 18 utable to child support obligations being enforced by the state 19 or local child support enforcement agency. The administrative 20 costs incurred shall be determined by the commission. The com- 21 mission, in its discretion, may require payment of administrative 22 costs in advance. 23 (7) As used in this subsection: 24 (a) "Unemployment compensation", for purposes of 25 subdivisions (1) through (5), means any compensation payable 26 under this act, including amounts payable by the commission 27 pursuant to an agreement under any federal law providing for 06318'01 24 1 compensation, assistance, or allowances with respect to 2 unemployment. 3 (b) "Child support obligations" includes only obligations 4 that are being enforced pursuant to a plan described in 5 section 454 of part D of title IV of the social security act, 6chapter 531, 49 Stat. 620,42 U.S.C. 654, that has been 7 approved by the secretary of health and human services under 8 part D of title IV of the social security act, chapter 531, 49 9 Stat. 620, 42 U.S.C. 651 to669655, 656 TO 660, AND 663 TO 10 669b. 11 (c) "State or local child support enforcement agency" means 12 any agency of this state or a political subdivision of this state 13 operating pursuant to a plan described in subparagraph (b). 14 (n) Subsection (i)(2) applies to services performed by 15 school bus drivers employed by a private contributing employer 16 holding a contractual relationship with an educational institu- 17 tion, but only if at least 75% of the individual's base period 18 wages with that employer are attributable to services performed 19 as a school bus driver. 20 (o)(1) For weeks of unemployment beginning after July 1, 21 1996, unemployment benefits based on services by a seasonal 22 worker performed in seasonal employment shall be payable only for 23 weeks of unemployment that occur during the normal seasonal work 24 period. Benefits shall not be paid based on services performed 25 in seasonal employment for any week of unemployment beginning 26 after the effective date of this subdivision that begins during 27 the period between 2 successive normal seasonal work periods to 06318'01 25 1 any individual if that individual performs the service in the 2 first of the normal seasonal work periods and if there is a rea- 3 sonable assurance that the individual will perform the service 4 for a seasonal employer in the second of the normal seasonal work 5 periods. If benefits are denied to an individual for any week 6 solely as a result of this subsection and the individual is not 7 offered an opportunity to perform in the second normal seasonal 8 work period for which reasonable assurance of employment had been 9 given, the individual is entitled to a retroactive payment of 10 benefits under this subsection for each week that the individual 11 previously filed a timely claim for benefits. An individual may 12 apply for any retroactive benefits under this subsection in 13 accordance with R 421.210 of the Michigan administrative code. 14 (2) Not less than 20 days before the estimated beginning 15 date of a normal seasonal work period, an employer may apply to 16 the commission in writing for designation as a seasonal 17 employer. At the time of application, the employer shall con- 18 spicuously display a copy of the application on the employer's 19 premises. Within 90 days after receipt of the application, the 20 commission shall determine if the employer is a seasonal 21 employer. A determination or redetermination of the commission 22 concerning the status of an employer as a seasonal employer, or a 23 decision of a referee or the board of review, or of the courts of 24 this state concerning the status of an employer as a seasonal 25 employer, which has become final, together with the record there- 26 of, may be introduced in any proceeding involving a claim for 27 benefits, and the facts found and decision issued in the 06318'01 26 1 determination, redetermination, or decision shall be conclusive 2 unless substantial evidence to the contrary is introduced by or 3 on behalf of the claimant. 4 (3) If the employer is determined to be a seasonal employer, 5 the employer shall conspicuously display on its premises a notice 6 of the determination and the beginning and ending dates of the 7 employer's normal seasonal work periods. The notice shall be 8 furnished by the commission. The notice shall additionally spec- 9 ify that an employee must timely apply for unemployment benefits 10 at the end of a first seasonal work period to preserve his or her 11 right to receive retroactive unemployment benefits in the event 12 that he or she is not reemployed by the seasonal employer in the 13 second of the normal seasonal work periods. 14 (4) The commission may issue a determination terminating an 15 employer's status as a seasonal employer on the commission's own 16 motion for good cause, or upon the written request of the 17 employer. A termination determination under this subdivision 18 terminates an employer's status as a seasonal employer, and shall 19 become effective on the beginning date of the normal seasonal 20 work period that would have immediately followed the date the 21 commission issues the determination. A determination under this 22 subdivision is subject to review in the same manner and to the 23 same extent as any other determination under this act. 24 (5) An employer whose status as a seasonal employer is ter- 25 minated under subdivision (4) may not reapply for a seasonal 26 employer status determination until after a regularly recurring 27 normal seasonal work period has begun and ended. 06318'01 27 1 (6) If a seasonal employer informs an employee who received 2 assurance of being rehired that, despite the assurance, the 3 employee will not be rehired at the beginning of the employer's 4 next normal seasonal work period, this subsection shall not pre- 5 vent the employee from receiving unemployment benefits in the 6 same manner and to the same extent he or she would receive bene- 7 fits under this act from an employer who has not been determined 8 to be a seasonal employer. 9 (7) A successor of a seasonal employer is considered to be a 10 seasonal employer unless the successor provides the commission, 11 within 120 days after the transfer, with a written request for 12 termination of its status as a seasonal employer in accordance 13 with subdivision (4). 14 (8) At the time an employee is hired by a seasonal employer, 15 the employer shall notify the employee in writing whether the 16 employee will be a seasonal worker. The employer shall provide 17 the worker with written notice of any subsequent change in the 18 employee's status as a seasonal worker. If an employee of a sea- 19 sonal employer is denied benefits because that employee is a sea- 20 sonal worker, the employee may contest that designation in 21 accordance with section 32a. 22 (9) As used in this subsection: 23 (a) "Construction industry" means the work activity desig- 24 nated inmajor groups 15, 16, and 17 of the standard industrial25classification manual, United States office of management and26budget, 1987 editionSECTOR GROUP 23 -- CONSTRUCTION OF THE 06318'01 28 1 NORTH AMERICAN CLASSIFICATION SYSTEM -- UNITED STATES OFFICE OF 2 MANAGEMENT AND BUDGET, 1997 EDITION. 3 (b) "Normal seasonal work period" means that period or those 4 periods of time determined pursuant to rules promulgated by the 5 commission during which an individual is employed in seasonal 6 employment. 7 (c) "Seasonal employment" means the employment of 1 or more 8 individuals primarily hired to perform services in an industry, 9 other than the construction industry, that does either of the 10 following: 11 (1) Customarily operates during regularly recurring periods 12 of 26 weeks or less in any 52-consecutive-week period. 13 (2) Customarily employs at least 50% of its employees for 14 regularly recurring periods of 26 weeks or less within a period 15 of 52 consecutive weeks. 16 (d) "Seasonal employer" means an employer, other than an 17 employer in the construction industry, who applies to the commis- 18 sion for designation as a seasonal employer and who the commis- 19 sion determines to be an employer whose operations and business 20 are substantially engaged in seasonal employment. 21 (e) "Seasonal worker" means a worker who has been paid wages 22 by a seasonal employer for work performed only during the normal 23 seasonal work period. 24 (10) If this subsection is found by the United States 25 department of labor to be contrary to the federal unemployment 26 tax act, chapter 23 of the internal revenue code of 1986, 26 27 U.S.C. 3301 to 3311, or the social security act, chapter 531, 49 06318'01 29 1 Stat. 620, and if conformity with the federal law is required as 2 a condition for full tax credit against the tax imposed under the 3 federal unemployment tax act or as a condition for receipt by the 4 commission of federal administrative grant funds under the social 5 security act, this subsection shall be invalid. 6 (p) Benefits shall not be paid to an individual based upon 7 his or her services as a school crossing guard for any week of 8 unemployment that begins between 2 successive academic years or 9 terms, if that individual performs the services of a school 10 crossing guard in the first of the academic years or terms and 11 has a reasonable assurance that he or she will perform those 12 services in the second of the academic years or terms. 06318'01 Final page. 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