March 16, 2011, Introduced by Rep. Somerville and referred to the Committee on Commerce.
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending section 62 (MCL 421.62), as amended by 1995 PA 125.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
62. (a) If the commission unemployment
agency determines
that a person has obtained benefits to which that person is not
entitled,
the commission it may recover a sum equal to the amount
received
plus interest by 1 or more of the following methods: (1)
deduction
from benefits payable to the individual, (2) payment by
the
individual to the commission in cash, or (3) deduction from a
tax refund payable to the individual as provided under section 30a
of
Act No. 122 of the Public Acts of 1941, being section 205.30a of
the
Michigan Compiled Laws 1941
PA 122, MCL 205.30a. Deduction from
benefits
payable to the individual shall be is limited to not more
than 20% of each weekly benefit check due the claimant. The
commission
unemployment agency shall not recover improperly paid
benefits from an individual more than 3 years, or more than 6 years
in the case of a violation of section 54(a) or (b) or sections 54a
to 54c, after the date of receipt of the improperly paid benefits
unless :
(1) the unemployment agency
filed a civil action is filed
in
a court by the commission within the 3-year or 6-year period; ,
(2)
the individual made an intentional
false statement,
misrepresentation, or concealment of material information to obtain
the
benefits; , or (3) or the commission unemployment agency issued
a determination requiring restitution within the 3-year or 6-year
period.
Furthermore, except Except
in a case of an intentional
false statement, misrepresentation, or concealment of material
information,
the commission unemployment
agency may waive recovery
of an improperly paid benefit or interest if the payment was not
the fault of the individual and if repayment would be contrary to
equity and good conscience.
(b)
For benefit years beginning before the conversion date
prescribed
in section 75 October 1, 2000, if the commission
unemployment agency determines that a person has intentionally made
a false statement or misrepresentation or has concealed material
information to obtain benefits, whether or not the person obtains
benefits by or because of the intentional false statement,
misrepresentation, or concealment of material information, the
person shall, in addition to any other applicable interest and
penalties, have all of his or her uncharged credit weeks with
respect to the benefit year in which the act occurred canceled as
of
the date the commission unemployment
agency receives notice of,
or initiates investigation of, the possible false statement,
misrepresentation, or concealment of material information,
whichever date is earlier. Before receiving benefits in a benefit
year established within 2 years after cancellation of uncharged
credit weeks under this subsection, the individual, in addition to
making the restitution of benefits established under subsection
(a),
may be liable to the commission, by cash, deduction from
benefits,
or deduction from a tax refund, for
an additional amount
as
determined by the commission unemployment
agency under this act,
which may be paid by cash, deduction from benefits, or deduction
from a tax refund. Restitution resulting from the intentional false
statement, misrepresentation, or concealment of material
information is not subject to the 20% limitation provided in
subsection
(a). For benefit years beginning after the conversion
date
prescribed in section 75 on
or after October 1, 2000, if the
commission
unemployment agency determines that a person has
intentionally made a false statement or misrepresentation or has
concealed material information to obtain benefits, whether or not
the person obtains benefits by or because of the intentional false
statement, misrepresentation, or concealment of material
information, the person shall, in addition to any other applicable
interest and penalties, have his or her rights to benefits for the
benefit year in which the act occurred canceled as of the date the
commission
unemployment agency receives notice of, or initiates
investigation of, a possible false statement, misrepresentation, or
concealment of material information, whichever date is earlier, and
wages used to establish that benefit year shall not be used to
establish another benefit year. Before receiving benefits in a
benefit year established within 2 years after cancellation of
rights to benefits under this subsection, the individual, in
addition to making the restitution of benefits established under
subsection
(a), may be liable to the commission, by cash, deduction
from
benefits, or deduction from a tax refund, for an additional
amount
as otherwise determined by the commission unemployment
agency under this act, which may be paid by cash, deduction from
benefits, or deduction from a tax refund. Restitution resulting
from the intentional false statement, misrepresentation, or
concealment of material information is not subject to the 20%
limitation provided in subsection (a).
(c)
Any determination made by the commission unemployment
agency under this section is final unless an application for a
redetermination
is filed with the commission in accordance with
section 32a.
(d)
The commission unemployment
agency shall take the action
necessary to recover all benefits improperly obtained or paid under
this act, and to enforce all interest and penalties under
subsection (b).
(e) Interest recovered under this section shall be deposited
in the special fraud control fund created in section 10.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 96th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 4450(request no.
01743'11).
(b) Senate Bill No.____ or House Bill No. 4451(request no.
01744'11).
(c) Senate Bill No.____ or House Bill No. 4448(request no.
01745'11).