SENATE BILL No. 1106

 

 

May 1, 2012, Introduced by Senators CASWELL, NOFS and GREEN and referred to the Committee on Reforms, Restructuring and Reinventing.

 

 

 

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

 

"Michigan employment security act,"

 

by amending section 46 (MCL 421.46), as amended by 2011 PA 269.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 46. (a) Subject to subsections (d) through (g), (f), for

 

benefit years beginning before the conversion date prescribed in

 

section 75, October 1, 2000, "benefit year" means the period of 52

 

consecutive calendar weeks beginning the first calendar week in

 

which an individual files a claim in accordance with section 32 and

 

meets all of the following conditions:

 

     (1) The individual has earned 20 credit weeks in the 52

 

consecutive calendar weeks before the week he or she files the

 

claim for benefits.

 


     (2) The individual is unemployed and meets all requirements of

 

section 28 for the week for which he or she files a claim for

 

benefits.

 

     (3) Except for a disqualification under section 29 (8)

 

involving a labor dispute during the individual's most recent

 

period of employment with the most recent employer with whom the

 

individual earned a credit week, the individual is not disqualified

 

or subject to disqualification for the week for which he or she

 

files a claim.

 

     (4) The individual does not have a benefit year already in

 

effect at the time of the claim.

 

     (b) For benefit years beginning on or after October 1, 2000,

 

"benefit year" means the period of 52 consecutive calendar weeks

 

beginning the first calendar week in which an individual files a

 

claim in accordance with section 32. However, a benefit year shall

 

not be established unless the individual meets either of the

 

following conditions:

 

     (1) The total wages paid to the individual in the base period

 

of the claim equals not less than 1.5 times the wages paid to the

 

individual in the calendar quarter of the base period in which the

 

individual was paid the highest wages.

 

     (2) The individual was paid wages in 2 or more calendar

 

quarters of the base period totaling at least 20 times the state

 

average weekly wage as determined by the unemployment agency.

 

     (c) For benefit years beginning after October 1, 2000, the

 

state average weekly wage for a calendar year shall be computed on

 

the basis of the 12 months ending the June 30 preceding that

 


calendar year. A benefit year shall not be established if the

 

individual was not paid wages of at least the state minimum hourly

 

wage multiplied by 388.06 rounded down to the nearest dollar in at

 

least 1 calendar quarter of the base period. A benefit year shall

 

not be established based on base period wages previously used to

 

establish a benefit year that resulted in the payment of benefits.

 

However, if a calendar quarter of the base period contains wages

 

that were previously used to establish a benefit year that resulted

 

in the payment of benefits, a claimant may establish a benefit year

 

using the wages in the remaining calendar quarters from among the

 

first 4 of the last 5 completed calendar quarters, or if a benefit

 

year cannot be established using those quarters, then by using

 

wages from among the last 4 completed calendar quarters. A benefit

 

year shall not be established unless, after the beginning of the

 

immediately preceding benefit year during which the individual

 

received benefits, the individual worked and received remuneration

 

in an amount equal to at least 5 times the individual's most recent

 

state weekly benefit rate in effect during the individual's

 

immediately preceding benefit year. If a quarterly wage report has

 

not been submitted in a timely manner by the employer as provided

 

in section 13 for any of the quarters of the base period, or if

 

wage information is not available for use by the unemployment

 

agency for the most recent completed calendar quarter, the

 

unemployment agency shall obtain and use the claimant's statement

 

of wages paid during the calendar quarters for which the wage

 

reports are missing to establish a benefit year. However, the

 

claimant's statement of wages shall only be used to establish a

 


benefit year if the claimant also provides to the unemployment

 

agency documentary or other evidence of those wages that is

 

satisfactory to the unemployment agency. A determination based on

 

the claimant's statement of wages paid during any of these calendar

 

quarters shall be redetermined if the quarterly wage report from

 

the employer is later received and would result in a change in the

 

claimant's weekly benefit amount or duration, or both, or if the

 

quarterly wage report from the employer later becomes available for

 

use by the unemployment agency and would result in a change in the

 

claimant's benefit amount or duration, or both. If the

 

redetermination results from the employer's failure to submit the

 

quarterly wage report in a timely manner, the redetermination shall

 

be effective as to benefits payable for weeks beginning after the

 

receipt of information not previously submitted by the employer.

 

     (d) If an individual files a claim for a 7-day period under

 

section 27(c), his or her benefit year begins the calendar week

 

containing the first day of that 7-day period.

 

     (e) If all or part of a claimant's right to benefits during

 

his or her benefit year is canceled under section 62(b), the

 

benefit year is terminated on the effective date of the

 

cancellation.

 

     (f) An individual may request a redetermination of his or her

 

benefit rights and cancellation of a previously established benefit

 

year if he or she has not completed a compensable period. Under

 

circumstances described in this subsection, the benefit year begins

 

the first day of the first week in which the request for

 

redetermination of benefit rights is duly filed.

 


     (g) Notwithstanding subsection (a), for services performed on

 

or after January 2, 1983, and with respect to benefit years

 

established before October 1, 2000, an individual is not entitled

 

to establish a benefit year based in whole or in part on credit

 

weeks for service in the employ of an employing unit, not otherwise

 

excluded under section 43(g), in which more than 50% of the

 

proprietary interest is owned by the individual or his or her son,

 

daughter, or spouse, or any combination of these individuals, or in

 

which more than 50% of the proprietary interest is owned by the

 

mother or father of a child under the age of 18, or mother and

 

father combined, unless both the individual and the employer notify

 

the commission, in response to the commission's request for

 

information, of the individual's relationship to the owners of the

 

proprietary interest in the employing unit. Upon timely

 

notification to the commission, a benefit year may be established

 

for the individual, if the individual meets all of the following

 

conditions: (1) has earned 20 credit weeks in the 52 consecutive

 

calendar weeks preceding the week with respect to which the

 

individual filed an application for benefits; (2) with respect to

 

the week for which the individual is filing an application for

 

benefits is unemployed, and meets all of the other requirements of

 

section 28; (3) with respect to the week for which the individual

 

is filing an application for benefits the individual is not

 

disqualified nor subject to disqualification, except in case of a

 

labor dispute under section 29(8), with respect to the most recent

 

period of employment with the most recent employer with whom the

 

individual earned a credit week. If an individual files an

 


application for a 7-day period as provided in section 27(c), the

 

benefit year with respect to the individual shall begin with the

 

calendar week which contains the first day of that 7-day period.

 

     (h) For benefit years established on or after July 1, 1983,

 

not more than 10 credit weeks based on services shall be used to

 

pay benefits. For the purpose of calculating the individual's

 

average weekly wage, all base period wages and credit weeks shall

 

be used. With respect to benefit years beginning on or after

 

October 1, 2000, and notwithstanding subsection (b), an individual

 

is not entitled to establish a benefit year based in whole or in

 

part on wages earned in service, not otherwise excluded under

 

section 43(g), in the employ of an employing unit in which more

 

than 50% of the proprietary interest is owned by the individual or

 

his or her son, daughter, spouse, or any combination of these

 

individuals, or in which more than 50% of the proprietary interest

 

is owned by the mother or father of a child under the age of 18, or

 

mother and father combined, unless both the individual and the

 

employer notify the commission, in response to the commission's

 

request for information, of the individual's relationship to the

 

owners of the proprietary interest in the employing unit. Upon

 

timely notification to the commission, a benefit year may be

 

established for the individual if the individual meets the

 

requirements of subsection (b). If wages in an individual's base

 

period were earned in service in the employ of such an employing

 

unit, the individual's weekly benefit rate shall be calculated in

 

accordance with section 27(b)(1) but the portion of the benefit

 

rate attributable to this service shall be payable for not more

 


than 7 weeks. The weekly benefit payment shall be reduced

 

thereafter by the percentage of charge attributable to service with

 

this employer, in accordance with section 20.