HB-4982, As Passed House, December 8, 2016

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4982

 

 

 

 

 

 

 

 

 

 

 

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

 

"Michigan employment security act,"

 

by amending sections 27, 32, 54, and 62 (MCL 421.27, 421.32,

 

421.54, and 421.62), section 27 as amended by 2012 PA 496, section

 

32 as amended by 2013 PA 144, section 54 as amended by 2013 PA 143,

 

and section 62 as amended by 2013 PA 147.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 27. (a)(1) When a determination, redetermination, or

 

decision is made that benefits are due an unemployed individual,

 

the benefits shall become payable from the fund and continue to be

 

payable to the unemployed individual, subject to the limitations

 

imposed by the individual's monetary entitlement, if the individual

 

continues to be unemployed and to file claims for benefits, until

 

the determination, redetermination, or decision is reversed, a

 

determination, redetermination, or decision on a new issue holding

 

the individual disqualified or ineligible is made, or, for benefit

 

years beginning before October 1, 2000, a new separation issue

 

arises resulting from subsequent work.

 

     (2) Benefits shall be paid are payable in person or by mail

 

through Employment employment security offices in accordance with

 

rules promulgated by the commission.unemployment agency.

 

     (b)(1) Subject to subsection (f), the weekly benefit rate for

 

an individual, with respect to benefit years beginning before

 

October 1, 2000, shall be is 67% of the individual's average after

 

tax weekly wage, except that the individual's maximum weekly

 

benefit rate shall must not exceed $300.00. However, with respect

 

to benefit years beginning on or after October 1, 2000, the

 

individual's weekly benefit rate is 4.1% of the individual's wages

 

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

 

individual was paid the highest total wages, plus $6.00 for each

 

dependent as defined in subdivision (4), up to a maximum of 5

 

dependents, claimed by the individual at the time the individual

 

files a new claim for benefits, except that the individual's

 

maximum weekly benefit rate shall must not exceed $300.00 before

 

April 26, 2002 and $362.00 for claims filed on and after April 26,

 

2002. The weekly benefit rate for an individual claiming benefits

 

on and after April 26, 2002 shall must be recalculated subject to

 

the $362.00 maximum weekly benefit rate. The unemployment agency

 

shall establish the procedures necessary to verify the number of

 

dependents claimed. If a person fraudulently claims a dependent,

 

that person is subject to the penalties set forth in sections 54


and 54c. For benefit years beginning on or after October 2, 1983,

 

the weekly benefit rate shall must be adjusted to the next lower

 

multiple of $1.00.

 

     (2) For benefit years beginning before October 1, 2000, the

 

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

 

on the basis of the 12 months ending the June 30 immediately before

 

that calendar year. The commission shall prepare a table of weekly

 

benefit rates based on an "average after tax weekly wage"

 

calculated by subtracting, from an individual's average weekly wage

 

as determined in accordance with section 51, a reasonable

 

approximation of the weekly amount required to be withheld by the

 

employer from the remuneration of the individual based on

 

dependents and exemptions for income taxes under 26 USC 3401 to

 

3406, and under section 351 of the income tax act of 1967, 1967 PA

 

281, MCL 206.351, and for old age and survivor's disability

 

insurance taxes under the federal insurance contributions act, 26

 

USC 3101 to 3128. For purposes of applying the table to an

 

individual's claim, a dependent shall be as defined in subdivision

 

(3). The table applicable to an individual's claim shall be the

 

table reflecting the number of dependents claimed by the individual

 

under subdivision (3). The commission shall adjust the tables based

 

on changes in withholding schedules published by the United States

 

department of treasury, internal revenue service, and by the

 

department of treasury. The number of dependents allowed shall be

 

determined with respect to each week of unemployment for which an

 

individual is claiming benefits.

 

     (3) For benefit years beginning before October 1, 2000, a


dependent means any of the following persons who are receiving and

 

for at least 90 consecutive days immediately before the week for

 

which benefits are claimed, or, in the case of a dependent husband,

 

wife, or child, for the duration of the marital or parental

 

relationship, if the relationship has existed less than 90 days,

 

has received more than 1/2 the cost of his or her support from the

 

individual claiming benefits:

 

     (a) A child, including stepchild, adopted child, or grandchild

 

of the individual who is under 18 years of age, or 18 years of age

 

or over if, because of physical or mental infirmity, the child is

 

unable to engage in a gainful occupation, or is a full-time student

 

as defined by the particular educational institution, at a high

 

school, vocational school, community or junior college, or college

 

or university and has not attained the age of 22.

 

     (b) The husband or wife of the individual.

 

     (c) The legal father or mother of the individual if that

 

parent is either more than 65 years of age or is permanently

 

disabled from engaging in a gainful occupation.

 

     (d) A brother or sister of the individual if the brother or

 

sister is orphaned or the living parents are dependent parents of

 

an individual, and the brother or sister is under 18 years of age,

 

or 18 years of age or over if, because of physical or mental

 

infirmity, the brother or sister is unable to engage in a gainful

 

occupation, or is a full-time student as defined by the particular

 

educational institution, at a high school, vocational school,

 

community or junior college, or college or university and is less

 

than 22 years of age.

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

 

dependent means any of the following persons who received for at

 

least 90 consecutive days immediately before the first week of the

 

benefit year or, in the case of a dependent husband, wife, or

 

child, for the duration of the marital or parental relationship if

 

the relationship existed less than 90 days before the beginning of

 

the benefit year, has received more than 1/2 the cost of his or her

 

support from the individual claiming the benefits:

 

     (a) A child, including stepchild, adopted child, or grandchild

 

of the individual who is under 18 years of age, or 18 years of age

 

and over if, because of physical or mental infirmity, the child is

 

unable to engage in a gainful occupation, or is a full-time student

 

as defined by the particular educational institution, at a high

 

school, vocational school, community or junior college, or college

 

or university and has not attained the age of 22.

 

     (b) The husband or wife of the individual.

 

     (c) The legal father or mother of the individual if that

 

parent is either more than 65 years of age or is permanently

 

disabled from engaging in a gainful occupation.

 

     (d) A brother or sister of the individual if the brother or

 

sister is orphaned or the living parents are dependent parents of

 

an individual, and the brother or sister is under 18 years of age,

 

or 18 years of age and over if, because of physical or mental

 

infirmity, the brother or sister is unable to engage in a gainful

 

occupation, or is a full-time student as defined by the particular

 

educational institution, at a high school, vocational school,

 

community or junior college, or college or university and is less


than 22 years of age.

 

     (5) For benefit years beginning before October 1, 2000,

 

dependency status of a dependent, child or otherwise, once

 

established or fixed in favor of an individual continues during the

 

individual's benefit year until terminated. Dependency status of a

 

dependent terminates at the end of the week in which the dependent

 

ceases to be an individual described in subdivision (3)(a), (b),

 

(c), or (d) because of age, death, or divorce. For benefit years

 

beginning on or after October 1, 2000, the The number of dependents

 

established for an individual at the beginning of the benefit year

 

shall remain in effect during the entire benefit year.

 

     (6) For benefit years beginning before October 1, 2000,

 

failure on the part of an individual, due to misinformation or lack

 

of information, to furnish all information material for

 

determination of the number of the individual's dependents when the

 

individual files a claim for benefits with respect to a week is

 

good cause to issue a redetermination as to the amount of benefits

 

based on the number of the individual's dependents as of the

 

beginning date of that week. Dependency status of a dependent,

 

child or otherwise, once established or fixed in favor of a person

 

is not transferable to or usable by another person with respect to

 

the same week.

 

     For benefit years beginning on or after October 1, 2000,

 

failure Failure on the part of an individual, due to misinformation

 

or lack of information, to furnish all information material for

 

determination of the number of the individual's dependents is good

 

cause to issue a redetermination as to the amount of benefits based


on the number of the individual's dependents as of the beginning of

 

the benefit year.

 

     (c) Subject to subsection (f), all of the following apply to

 

eligible individuals:

 

     (1) Each eligible individual shall must be paid a weekly

 

benefit rate with respect to the week for which the individual

 

earns or receives no remuneration. Notwithstanding the definition

 

of week in section 50, if within 2 consecutive weeks in which an

 

individual was not unemployed within the meaning of section 48

 

there was a period of 7 or more consecutive days for which the

 

individual did not earn or receive remuneration, that period shall

 

be is considered a week for benefit purposes under this act if a

 

claim for benefits for that period is filed not later than 30 days

 

after the end of the period.

 

     (2) Each eligible individual shall have his or her The weekly

 

benefit rate is reduced with respect to each week in which the

 

eligible individual earns or receives remuneration at the rate of

 

40 cents for each whole $1.00 of remuneration earned or received

 

during that week. Beginning October 1, 2015, an eligible

 

individual's weekly benefit rate shall be is reduced at the rate of

 

50 cents for each whole $1.00 of remuneration in which the eligible

 

individual earns or receives remuneration in that benefit week. The

 

weekly benefit rate shall not be is not reduced under this

 

subdivision for remuneration received for on-call or training

 

services as a volunteer firefighter, if the volunteer firefighter

 

receives less than $10,000.00 in a calendar year for services as a

 

volunteer firefighter.

     (3) An individual who receives or earns partial remuneration

 

may not receive a total of benefits and earnings that exceeds 1-3/5

 

times his or her weekly benefit amount. For each dollar of total

 

benefits and earnings that exceeds 1-3/5 times the individual's

 

weekly benefit amount, benefits shall be is reduced by $1.00.

 

Beginning October 1, 2015, the total benefits and earnings for an

 

individual who receives or earns partial remuneration shall may not

 

exceed 1-1/2 times his or her weekly benefit amount. The

 

individual's benefits shall be are reduced by $1.00 for each dollar

 

by which the total benefits and earnings exceed 1-1/2 times the

 

individual's weekly benefit amount.

 

     (4) If the reduction in a claimant's benefit rate for a week

 

in accordance with subdivision (2) or (3) results in a benefit rate

 

greater than zero for that week, the claimant's balance of weeks of

 

benefit payments shall be is reduced by 1 week.

 

     (5) All remuneration for work performed during a shift that

 

terminates on 1 day but that began on the preceding day shall be is

 

considered to have been earned by the eligible individual on the

 

preceding day.

 

     (6) The unemployment agency shall report annually to the

 

legislature the following information with regard to subdivisions

 

(2) and (3):

 

     (a) The number of individuals whose weekly benefit rate was

 

reduced at the rate of 40 or 50 cents for each whole $1.00 of

 

remuneration earned or received over the immediately preceding

 

calendar year.

 

     (b) The number of individuals who received or earned partial


remuneration at or exceeding the applicable limit of 1-1/2 or 1-3/5

 

times their weekly benefit amount prescribed in subdivision (3) for

 

any 1 or more weeks during the immediately preceding calendar year.

 

     (7) The unemployment agency shall not use prorated quarterly

 

wages to establish a reduction in benefits under this subsection.

 

     (d) For benefit years beginning before October 1, 2000, and

 

subject to subsection (f) and this subsection, the amount of

 

benefits to which an individual who is otherwise eligible is

 

entitled during a benefit year from an employer with respect to

 

employment during the base period is the amount obtained by

 

multiplying the weekly benefit rate with respect to that employment

 

by 3/4 of the number of credit weeks earned in the employment. For

 

the purpose of this subsection and section 20(c), if the resultant

 

product is not an even multiple of 1/2 the weekly benefit rate, the

 

product shall be raised to an amount equal to the next higher

 

multiple of 1/2 the weekly benefit rate, and, for an individual who

 

was employed by only 1 employer in the individual's base period and

 

earned 34 credit weeks with that employer, the product shall be

 

raised to the next higher multiple of the weekly benefit rate. The

 

maximum amount of benefits payable to an individual within a

 

benefit year, with respect to employment by an employer, shall not

 

exceed 26 times the weekly benefit rate with respect to that

 

employment. The maximum amount of benefits payable to an individual

 

within a benefit year shall not exceed the amount to which the

 

individual would be entitled for 26 weeks of unemployment in which

 

remuneration was not earned or received. The limitation of total

 

benefits set forth in this subsection does not apply to claimants


declared eligible for training benefits in accordance with

 

subsection (g). For benefit years beginning on or after October 1,

 

2000, and subject Subject to subsection (f) and this subsection,

 

the maximum benefit amount payable to an individual in a benefit

 

year for purposes of this section and section 20(d) is the number

 

of weeks of benefits payable to an individual during the benefit

 

year, multiplied by the individual's weekly benefit rate. The

 

number of weeks of benefits payable to an individual shall be

 

calculated by taking 43% of the individual's base period wages and

 

dividing the result by the individual's weekly benefit rate. If the

 

quotient is not a whole or half number, the result shall be is

 

rounded down to the nearest half number. However, for each eligible

 

individual filing an initial claim before January 15, 2012, not

 

more than 26 weeks of benefits or less than 14 weeks of benefits

 

shall be are payable to an individual in a benefit year. For each

 

eligible individual filing an initial claim on or after January 15,

 

2012, not more than 20 weeks of benefits or less than 14 weeks of

 

benefits shall be are payable to an individual in a benefit year.

 

The limitation of total benefits set forth in this subsection does

 

not apply to claimants declared eligible for training benefits in

 

accordance with subsection (g).

 

     (e) When a claimant dies or is judicially declared insane or

 

mentally incompetent, unemployment compensation benefits accrued

 

and payable to that person for weeks of unemployment before death,

 

insanity, or incompetency, but not paid, shall become due and

 

payable to the person who is the legal heir or guardian of the

 

claimant or to any other person found by the commission to be


equitably entitled to the benefits by reason of having incurred

 

expense in behalf of the claimant for the claimant's burial or

 

other necessary expenses.

 

     (f)(1) For benefit years beginning before October 1, 2000, and

 

notwithstanding any inconsistent provisions of this act, the weekly

 

benefit rate of each individual who is receiving or will receive a

 

"retirement benefit", as defined in subdivision (4), shall be is

 

adjusted as provided in subparagraphs (a), (b), and (c). However,

 

an individual's extended benefit account and an individual's weekly

 

extended benefit rate under section 64 shall be is established

 

without reduction under this subsection unless subdivision (5) is

 

in effect. Except as otherwise provided in this subsection, all

 

other provisions of this act continue to apply in connection with

 

the benefit claims of those retired persons.

 

     (a) If and to the extent that unemployment benefits payable

 

under this act would be chargeable to an employer who has

 

contributed to the financing of a retirement plan under which the

 

claimant is receiving or will receive a retirement benefit yielding

 

a pro rata weekly amount equal to or larger than the claimant's

 

weekly benefit rate as otherwise established under this act, the

 

claimant shall must not receive unemployment benefits that would be

 

chargeable to the employer under this act.

 

     (b) If and to the extent that unemployment benefits payable

 

under this act would be chargeable to an employer who has

 

contributed to the financing of a retirement plan under which the

 

claimant is receiving or will receive a retirement benefit yielding

 

a pro rata weekly amount less than the claimant's weekly benefit


rate as otherwise established under this act, then the weekly

 

benefit rate otherwise payable to the claimant and chargeable to

 

the employer under this act shall be are reduced by an amount equal

 

to the pro rata weekly amount, adjusted to the next lower multiple

 

of $1.00, which the claimant is receiving or will receive as a

 

retirement benefit.

 

     (c) If the unemployment benefit payable under this act would

 

be chargeable to an employer who has not contributed to the

 

financing of a retirement plan under which the claimant is

 

receiving or will receive a retirement benefit, then the weekly

 

benefit rate of the claimant as otherwise established under this

 

act shall is not be reduced due to receipt of a retirement benefit.

 

     (d) If the unemployment benefit payable under this act is

 

computed on the basis of multiemployer credit weeks and a portion

 

of the benefit is allocable under section 20(e) to an employer who

 

has contributed to the financing of a retirement plan under which

 

the claimant is receiving or will receive a retirement benefit, the

 

adjustments required by subparagraph (a) or (b) apply only to that

 

portion of the weekly benefit rate that would otherwise be

 

allocable and chargeable to the employer.

 

     (2) If an individual's weekly benefit rate under this act was

 

established before the period for which the individual first

 

receives a retirement benefit, any benefits received after a

 

retirement benefit becomes payable shall must be determined in

 

accordance with the formula stated in this subsection.

 

     (3) When necessary to assure prompt payment of benefits, the

 

commission shall determine the pro rata weekly amount yielded by an


individual's retirement benefit based on the best information

 

currently available to it. In the absence of fraud, a determination

 

shall must not be reconsidered unless it is established that the

 

individual's actual retirement benefit in fact differs from the

 

amount determined by $2.00 or more per week. The reconsideration

 

shall apply applies only to benefits as that may be claimed after

 

the information on which the reconsideration is based was received

 

by the commission.

 

     (4)(a) As used in this subsection, "retirement benefit" means

 

a benefit, annuity, or pension of any type or that part thereof

 

that is described in subparagraph (b) that is both:

 

     (i) Provided as an incident of employment under an established

 

retirement plan, policy, or agreement, including federal social

 

security if subdivision (5) is in effect.

 

     (ii) Payable to an individual because the individual has

 

qualified on the basis of attained age, length of service, or

 

disability, whether or not the individual retired or was retired

 

from employment. Amounts paid to individuals in the course of

 

liquidation of a private pension or retirement fund because of

 

termination of the business or of a plant or department of the

 

business of the employer involved are not retirement benefits.

 

     (b) If a benefit as described in subparagraph (a) is payable

 

or paid to the individual under a plan to which the individual has

 

contributed:

 

     (i) Less than 1/2 of the cost of the benefit, then only 1/2 of

 

the benefit is treated as a retirement benefit.

 

     (ii) One-half or more of the cost of the benefit, then none of


the benefit is treated as a retirement benefit.

 

     (c) The burden of establishing the extent of an individual's

 

contribution to the cost of his or her retirement benefit for the

 

purpose of subparagraph (b) is upon the employer who has

 

contributed to the plan under which a benefit is provided.

 

     (5) Notwithstanding any other provision of this subsection,

 

for any week that begins after March 31, 1980, and with respect to

 

which an individual is receiving a governmental or other pension

 

and claiming unemployment compensation, the weekly benefit amount

 

payable to the individual for those weeks shall be is reduced, but

 

not below zero, by the entire prorated weekly amount of any

 

governmental or other pension, retirement or retired pay, annuity,

 

or any other similar payment that is based on any previous work of

 

the individual. This reduction shall be is made only if it is

 

required as a condition for full tax credit against the tax imposed

 

by the federal unemployment tax act, 26 USC 3301 to 3311.

 

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

 

notwithstanding any inconsistent provisions of this act, the weekly

 

benefit rate of each individual who is receiving or will receive a

 

retirement benefit, as defined in subdivision (4), shall be is

 

adjusted as provided in subparagraphs (a), (b), and (c). However,

 

an individual's extended benefit account and an individual's weekly

 

extended benefit rate under section 64 shall be is established

 

without reduction under this subsection, unless subdivision (5) is

 

in effect. Except as otherwise provided in this subsection, all the

 

other provisions of this act apply to the benefit claims of those

 

retired persons. However, if the reduction would impair the full


tax credit against the tax imposed by the federal unemployment tax

 

act, 26 USC 3301 to 3311, unemployment benefits shall not be are

 

not reduced as provided in subparagraphs (a), (b), and (c) for

 

receipt of any governmental or other pension, retirement or retired

 

pay, annuity, or other similar payment that was not includable in

 

the gross income of the individual for the taxable year in which it

 

was received because it was a part of a rollover distribution.

 

     (a) If any base period or chargeable employer has contributed

 

to the financing of a retirement plan under which the claimant is

 

receiving or will receive a retirement benefit yielding a pro rata

 

weekly amount equal to or larger than the claimant's weekly benefit

 

rate as otherwise established under this act, the claimant shall

 

not is not eligible to receive unemployment benefits.

 

     (b) If any base period employer or chargeable employer has

 

contributed to the financing of a retirement plan under which the

 

claimant is receiving or will receive a retirement benefit yielding

 

a pro rata weekly amount less than the claimant's weekly benefit

 

rate as otherwise established under this act, then the weekly

 

benefit rate otherwise payable to the claimant shall be is reduced

 

by an amount equal to the pro rata weekly amount, adjusted to the

 

next lower multiple of $1.00, which the claimant is receiving or

 

will receive as a retirement benefit.

 

     (c) If no base period or separating employer has contributed

 

to the financing of a retirement plan under which the claimant is

 

receiving or will receive a retirement benefit, then the weekly

 

benefit rate of the claimant as otherwise established under this

 

act shall not be reduced due to receipt of a retirement benefit.

     (g) Notwithstanding any other provision of this act, an

 

individual pursuing vocational training or retraining pursuant to

 

section 28(2) who has exhausted all benefits available under

 

subsection (d) may be paid for each week of approved vocational

 

training pursued beyond the date of exhaustion a benefit amount in

 

accordance with subsection (c), but not in excess of the

 

individual's most recent weekly benefit rate. However, an

 

individual shall must not be paid training benefits totaling more

 

than 18 times the individual's most recent weekly benefit rate. The

 

expiration or termination of a benefit year shall does not stop or

 

interrupt payment of training benefits if the training for which

 

the benefits were granted began before expiration or termination of

 

the benefit year.

 

     (h) A payment of accrued unemployment benefits shall not be

 

made is not payable to an eligible individual or in behalf of that

 

individual as provided in subsection (e) more than 6 years after

 

the ending date of the benefit year covering the payment or 2

 

calendar years after the calendar year in which there is final

 

disposition of a contested case, whichever is later.

 

     (i) Benefits based on service in employment described in

 

section 42(8), (9), and (10) are payable in the same amount, on the

 

same terms, and subject to the same conditions as compensation

 

payable on the basis of other service subject to this act, except

 

that:

 

     (1) With respect to service performed in an instructional,

 

research, or principal administrative capacity for an institution

 

of higher education as defined in section 53(2), or for an


educational institution other than an institution of higher

 

education as defined in section 53(3), benefits shall not be paid

 

are not payable to an individual based on those services for any

 

week of unemployment beginning after December 31, 1977 that

 

commences during the period between 2 successive academic years or

 

during a similar period between 2 regular terms, whether or not

 

successive, or during a period of paid sabbatical leave provided

 

for in the individual's contract, to an individual if the

 

individual performs the service in the first of the academic years

 

or terms and if there is a contract or a reasonable assurance that

 

the individual will perform service in an instructional, research,

 

or principal administrative capacity for an institution of higher

 

education or an educational institution other than an institution

 

of higher education in the second of the academic years or terms,

 

whether or not the terms are successive.

 

     (2) With respect to service performed in other than an

 

instructional, research, or principal administrative capacity for

 

an institution of higher education as defined in section 53(2) or

 

for an educational institution other than an institution of higher

 

education as defined in section 53(3), benefits shall not be paid

 

are not payable based on those services for any week of

 

unemployment beginning after December 31, 1977 that commences

 

during the period between 2 successive academic years or terms to

 

any individual if that individual performs the service in the first

 

of the academic years or terms and if there is a reasonable

 

assurance that the individual will perform the service for an

 

institution of higher education or an educational institution other


than an institution of higher education in the second of the

 

academic years or terms.

 

     (3) With respect to any service described in subdivision (1)

 

or (2), benefits shall not be paid are not payable to an individual

 

based upon service for any week of unemployment that commences

 

during an established and customary vacation period or holiday

 

recess if the individual performs the service in the period

 

immediately before the vacation period or holiday recess and there

 

is a contract or reasonable assurance that the individual will

 

perform the service in the period immediately following the

 

vacation period or holiday recess.

 

     (4) If benefits are denied to an individual for any week

 

solely as a result of subdivision (2) and the individual was not

 

offered an opportunity to perform in the second academic year or

 

term the service for which reasonable assurance had been given, the

 

individual is entitled to a retroactive payment of benefits for

 

each week for which the individual had previously filed a timely

 

claim for benefits. An individual entitled to benefits under this

 

subdivision may apply for those benefits by mail in accordance with

 

R 421.210 of the Michigan administrative code Administrative Code

 

as promulgated by the commission.

 

     (5) Benefits based upon services in other than an

 

instructional, research, or principal administrative capacity for

 

an institution of higher education shall not be are not denied for

 

any week of unemployment commencing during the period between 2

 

successive academic years or terms solely because the individual

 

had performed the service in the first of the academic years or


terms and there is reasonable assurance that the individual will

 

perform the service for an institution of higher education or an

 

educational institution other than an institution of higher

 

education in the second of the academic years or terms, unless a

 

denial is required as a condition for full tax credit against the

 

tax imposed by the federal unemployment tax act, 26 USC 3301 to

 

3311.

 

     (6) For benefit years established before October 1, 2000, and

 

notwithstanding subdivisions (1), (2), and (3), the denial of

 

benefits does not prevent an individual from completing

 

requalifying weeks in accordance with section 29(3) nor does the

 

denial prevent an individual from receiving benefits based on

 

service with an employer other than an educational institution for

 

any week of unemployment occurring between academic years or terms,

 

whether or not successive, or during an established and customary

 

vacation period or holiday recess, even though the employer is not

 

the most recent chargeable employer in the individual's base

 

period. However, in that case section 20(b) applies to the sequence

 

of benefit charging, except for the employment with the educational

 

institution, and section 50(b) applies to the calculation of credit

 

weeks. When a denial of benefits under subdivision (1) no longer

 

applies, benefits shall be are charged in accordance with the

 

normal sequence of charging as provided in section 20(b).

 

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

 

and notwithstanding subdivisions (1), (2), and (3), the denial of

 

benefits shall does not prevent an individual from completing

 

requalifying weeks in accordance with section 29(3) nor shall the


denial and does not prevent an individual from receiving benefits

 

based on service with another base period employer other than an

 

educational institution for any week of unemployment occurring

 

between academic years or terms, whether or not successive, or

 

during an established and customary vacation period or holiday

 

recess. However, when if benefits are paid based on service with 1

 

or more base period employers other than an educational

 

institution, the individual's weekly benefit rate shall be is

 

calculated in accordance with subsection (b)(1) but during the

 

denial period the individual's weekly benefit payment shall be is

 

reduced by the portion of the payment attributable to base period

 

wages paid by an educational institution and the account or

 

experience account of the educational institution shall is not be

 

charged for benefits payable to the individual. When a denial of

 

benefits under subdivision (1) is no longer applicable, benefits

 

shall be are paid and charged on the basis of base period wages

 

with each of the base period employers including the educational

 

institution.

 

     (8) For the purposes of this subsection, "academic year" means

 

that period, as defined by the educational institution, when

 

classes are in session for that length of time required for

 

students to receive sufficient instruction or earn sufficient

 

credit to complete academic requirements for a particular grade

 

level or to complete instruction in a noncredit course.

 

     (9) In accordance with subdivisions (1), (2), and (3),

 

benefits for any week of unemployment shall be are denied to an

 

individual who performed services described in subdivision (1),


(2), or (3) in an educational institution while in the employ of an

 

educational service agency. For the purpose of this subdivision,

 

"educational service agency" means a governmental agency or

 

governmental entity that is established and operated exclusively

 

for the purpose of providing the services to 1 or more educational

 

institutions.

 

     (j) Benefits shall not be paid are not payable to an

 

individual on the basis of any base period services, substantially

 

all of which consist of participating in sports or athletic events

 

or training or preparing to participate, for a week that commences

 

during the period between 2 successive sport seasons or similar

 

periods if the individual performed the services in the first of

 

the seasons or similar periods and there is a reasonable assurance

 

that the individual will perform the services in the later of the

 

seasons or similar periods.

 

     (k)(1) Benefits are not payable on the basis of services

 

performed by an alien unless the alien is an individual who was

 

lawfully admitted for permanent residence at the time the services

 

were performed, was lawfully present for the purpose of performing

 

the services, or was permanently residing in the United States

 

under color of law at the time the services were performed,

 

including an alien who was lawfully present in the United States

 

under section 212(d)(5) of the immigration and nationality act, 8

 

USC 1182.

 

     (2) Any data or information required of individuals applying

 

for benefits to determine whether benefits are payable because of

 

their alien status are uniformly required from all applicants for


benefits.

 

     (3) If an individual's application for benefits would

 

otherwise be approved, a determination that benefits to that

 

individual are not payable because of the individual's alien status

 

shall must not be made except upon a preponderance of the evidence.

 

     (m)(1) An individual filing a new claim for unemployment

 

compensation under this act, at the time of filing the claim, shall

 

disclose whether the individual owes child support obligations as

 

defined in this subsection. If an individual discloses that he or

 

she owes child support obligations and is determined to be eligible

 

for unemployment compensation, the unemployment agency shall notify

 

the state or local child support enforcement agency enforcing the

 

obligation that the individual has been determined to be eligible

 

for unemployment compensation.

 

     (2) Notwithstanding section 30, the unemployment agency shall

 

deduct and withhold from any unemployment compensation payable to

 

an individual who owes child support obligations by using whichever

 

of the following methods results in the greatest amount:

 

     (a) The amount, if any, specified by the individual to be

 

deducted and withheld under this subdivision.

 

     (b) The amount, if any, determined pursuant to an agreement

 

submitted to the commission under 42 USC 654(19)(b)(i),

 

654(19)(B)(i), by the state or local child support enforcement

 

agency.

 

     (c) Any amount otherwise required to be deducted and withheld

 

from unemployment compensation by legal process, as that term is

 

defined in 42 USC 659(i)(5), properly served upon the commission.

     (3) The amount of unemployment compensation subject to

 

deduction under subdivision (2) is that portion that remains

 

payable to the individual after application of the recoupment

 

provisions of section 62(a) and the reduction provisions of

 

subsections (c) and (f).

 

     (4) Any The unemployment agency shall pay any amount deducted

 

and withheld under subdivision (2) shall be paid by the commission

 

to the appropriate state or local child support enforcement agency.

 

     (5) Any amount deducted and withheld under subdivision (2)

 

shall be is treated for all purposes as if it were paid to the

 

individual as unemployment compensation and paid by the individual

 

to the state or local child support enforcement agency in

 

satisfaction of the individual's child support obligations.

 

     (6) Provisions concerning deductions under this subsection

 

apply only if the state or local child support enforcement agency

 

agrees in writing to reimburse and does reimburse the commission

 

unemployment agency for the administrative costs incurred by the

 

commission unemployment agency under this subsection that are

 

attributable to child support obligations being enforced by the

 

state or local child support enforcement agency. The administrative

 

costs incurred shall be are determined by the commission.

 

unemployment agency. The commission, unemployment agency, in its

 

discretion, may require payment of administrative costs in advance.

 

     (7) As used in this subsection:

 

     (a) "Unemployment compensation", for purposes of subdivisions

 

(1) to (5), means any compensation payable under this act,

 

including amounts payable by the commission unemployment agency


pursuant to an agreement under any federal law providing for

 

compensation, assistance, or allowances with respect to

 

unemployment.

 

     (b) "Child support obligations" includes only obligations that

 

are being enforced pursuant to a plan described in 42 USC 654 that

 

has been approved by the secretary of health and human services

 

Secretary of Health and Human Services under 42 USC 651 to 669b.

 

     (c) "State or local child support enforcement agency" means

 

any agency of this state or a political subdivision of this state

 

operating pursuant to a plan described in subparagraph (b).

 

     (n) Subsection (i)(2) applies to services performed by school

 

bus drivers employed by a private contributing employer holding a

 

contractual relationship with an educational institution, but only

 

if at least 75% of the individual's base period wages with that

 

employer are attributable to services performed as a school bus

 

driver. Subsection (i)(1) and (2) but not subsection (i)(3) applies

 

to other services described in those subdivisions that are

 

performed by any employees under an employer's contract with an

 

educational institution or an educational service agency.

 

     (o)(1) For weeks of unemployment beginning after July 1, 1996,

 

unemployment benefits based on services by a seasonal worker

 

performed in seasonal employment are payable only for weeks of

 

unemployment that occur during the normal seasonal work period.

 

Benefits shall not be paid are not payable based on services

 

performed in seasonal employment for any week of unemployment

 

beginning after March 28, 1996 that begins during the period

 

between 2 successive normal seasonal work periods to any individual


if that individual performs the service in the first of the normal

 

seasonal work periods and if there is a reasonable assurance that

 

the individual will perform the service for a seasonal employer in

 

the second of the normal seasonal work periods. If benefits are

 

denied to an individual for any week solely as a result of this

 

subsection and the individual is not offered an opportunity to

 

perform in the second normal seasonal work period for which

 

reasonable assurance of employment had been given, the individual

 

is entitled to a retroactive payment of benefits under this

 

subsection for each week that the individual previously filed a

 

timely claim for benefits. An individual may apply for any

 

retroactive benefits under this subsection in accordance with R

 

421.210 of the Michigan administrative code.Administrative Code.

 

     (2) Not less than 20 days before the estimated beginning date

 

of a normal seasonal work period, an employer may apply to the

 

commission in writing for designation as a seasonal employer. At

 

the time of application, the employer shall conspicuously display a

 

copy of the application on the employer's premises. Within 90 days

 

after receipt of the application, the commission shall determine if

 

the employer is a seasonal employer. A determination or

 

redetermination of the commission concerning the status of an

 

employer as a seasonal employer, or a decision of an administrative

 

law judge, the Michigan compensation appellate commission, or the

 

courts of this state concerning the status of an employer as a

 

seasonal employer, which has become final, together with the record

 

thereof, may be introduced in any proceeding involving a claim for

 

benefits, and the facts found and decision issued in the


determination, redetermination, or decision shall be is conclusive

 

unless substantial evidence to the contrary is introduced by or on

 

behalf of the claimant.

 

     (3) If the employer is determined to be a seasonal employer,

 

the employer shall conspicuously display on its premises a notice

 

of the determination and the beginning and ending dates of the

 

employer's normal seasonal work periods. The notice shall be

 

furnished by the commission. The commission shall furnish the

 

notice. The notice shall must additionally specify that an employee

 

must timely apply for unemployment benefits at the end of a first

 

seasonal work period to preserve his or her right to receive

 

retroactive unemployment benefits if he or she is not reemployed by

 

the seasonal employer in the second of the normal seasonal work

 

periods.

 

     (4) The commission may issue a determination terminating an

 

employer's status as a seasonal employer on the commission's own

 

motion for good cause, or upon the written request of the employer.

 

A termination determination under this subdivision terminates an

 

employer's status as a seasonal employer, and becomes effective on

 

the beginning date of the normal seasonal work period that would

 

have immediately followed the date the commission issues the

 

determination. A determination under this subdivision is subject to

 

review in the same manner and to the same extent as any other

 

determination under this act.

 

     (5) An employer whose status as a seasonal employer is

 

terminated under subdivision (4) may not reapply for a seasonal

 

employer status determination until after a regularly recurring


normal seasonal work period has begun and ended.

 

     (6) If a seasonal employer informs an employee who received

 

assurance of being rehired that, despite the assurance, the

 

employee will not be rehired at the beginning of the employer's

 

next normal seasonal work period, this subsection does not prevent

 

the employee from receiving unemployment benefits in the same

 

manner and to the same extent he or she would receive benefits

 

under this act from an employer who has not been determined to be a

 

seasonal employer.

 

     (7) A successor of a seasonal employer is considered to be a

 

seasonal employer unless the successor provides the commission,

 

within 120 days after the transfer, with a written request for

 

termination of its status as a seasonal employer in accordance with

 

subdivision (4).

 

     (8) At the time an employee is hired by a seasonal employer,

 

the employer shall notify the employee in writing if the employee

 

will be a seasonal worker. The employer shall provide the worker

 

with written notice of any subsequent change in the employee's

 

status as a seasonal worker. If an employee of a seasonal employer

 

is denied benefits because that employee is a seasonal worker, the

 

employee may contest that designation in accordance with section

 

32a.

 

     (9) As used in this subsection:

 

     (a) "Construction industry" means the work activity designated

 

in sector group 23 - construction of the North American

 

classification system - United States office of management and

 

budget, Office of Management and Budget, 1997 edition.

     (b) "Normal seasonal work period" means that period or those

 

periods of time determined under rules promulgated by the

 

commission unemployment agency during which an individual is

 

employed in seasonal employment.

 

     (c) "Seasonal employment" means the employment of 1 or more

 

individuals primarily hired to perform services during regularly

 

recurring periods of 26 weeks or less in any 52-week period other

 

than services in the construction industry.

 

     (d) "Seasonal employer" means an employer, other than an

 

employer in the construction industry, who applies to the

 

commission unemployment agency for designation as a seasonal

 

employer and who the commission unemployment agency determines is

 

an employer whose operations and business require employees engaged

 

in seasonal employment. A seasonal employer designation under this

 

act need not correspond to a category assigned under the North

 

American classification system — United States office of management

 

and budget.Office of Management and Budget.

 

     (e) "Seasonal worker" means a worker who has been paid wages

 

by a seasonal employer for work performed only during the normal

 

seasonal work period.

 

     (10) This subsection does not apply if the United States

 

department of labor Department of Labor finds it to be contrary to

 

the federal unemployment tax act, 26 USC 3301 to 3311, or the

 

social security act, chapter 531, 49 Stat. Stat 620, and if

 

conformity with the federal law is required as a condition for full

 

tax credit against the tax imposed under the federal unemployment

 

tax act, 26 USC 3301 to 3311, or as a condition for receipt by the


commission of federal administrative grant funds under the social

 

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

 

     (p) Benefits shall not be paid are not payable to an

 

individual based upon his or her services as a school crossing

 

guard for any week of unemployment that begins between 2 successive

 

academic years or terms, if that individual performs the services

 

of a school crossing guard in the first of the academic years or

 

terms and has a reasonable assurance that he or she will perform

 

those services in the second of the academic years or terms.

 

     Sec. 32. (a) Claims for benefits shall be made pursuant to

 

regulations prescribed by the unemployment agency. The unemployment

 

agency shall designate representatives who shall promptly examine

 

claims and make a determination on the facts. The unemployment

 

agency may establish rules providing for the examination of claims,

 

the determination of the validity of the claims, and the amount and

 

duration of benefits to be paid. The claimant and other interested

 

parties shall be promptly notified of the determination and the

 

reasons for the determination.

 

     (b) The unemployment agency shall mail to the claimant, to

 

each base period employer or employing unit, and to the separating

 

employer or employing unit, a monetary determination. The monetary

 

determination shall notify each of these employers or employing

 

units that the claimant has filed an application for benefits and

 

the amount the claimant reported as earned with the separating

 

employer or employing unit, and shall state the name of each

 

employer or employing unit in the base period and the name of the

 

separating employer or employing unit. The monetary determination


shall also state the claimant's weekly benefit rate, the amount of

 

base period wages paid by each base period employer, the maximum

 

benefit amount that could be charged to each employer's account or

 

experience account, and the reason for separation reported by the

 

claimant. The monetary determination shall also state whether the

 

claimant is monetarily eligible to receive unemployment benefits.

 

Except for separations under section 29(1)(a), no further

 

reconsideration of a separation from any base period employer will

 

be made unless the base period employer notifies the unemployment

 

agency of a possible disqualifying separation within 30 days of the

 

separation in accordance with this subsection. Charges to the

 

employer and payments to the claimant shall be as described in

 

section 20(a). New, additional, or corrected information received

 

by the unemployment agency more than 10 days after mailing the

 

monetary determination shall be considered a request for

 

reconsideration by the employer of the monetary determination and

 

shall be reviewed as provided in section 32a.

 

     (c) For the purpose of determining a claimant's nonmonetary

 

eligibility and qualification for benefits, if the claimant's most

 

recent base period or benefit year separation was for a reason

 

other than the lack of work, then a determination shall be issued

 

concerning that separation to the claimant and to the separating

 

employer. If a claimant is not disqualified based on his or her

 

most recent separation from employment and has satisfied the

 

requirements of section 29, the unemployment agency shall issue a

 

nonmonetary determination as to that separation only. If a claimant

 

is not disqualified based on his or her most recent separation from


employment and has not satisfied the requirements of section 29,

 

the unemployment agency shall issue 1 or more nonmonetary

 

determinations necessary to establish the claimant's qualification

 

for benefits based on any prior separation in inverse chronological

 

order. The unemployment agency shall consider all base period

 

separations involving disqualifications under section 29(1)(h),

 

(i), (j), (k), (m), or (n) in determining a claimant's nonmonetary

 

eligibility and qualification for benefits. An employer may

 

designate in writing to the unemployment agency an individual or

 

another employer or an employing unit to receive any notice

 

required to be given by the unemployment agency to that employer or

 

to represent that employer in any proceeding before the

 

unemployment agency as provided in section 31.

 

     (d) If the unemployment agency requests additional monetary or

 

nonmonetary information from an employer or employing unit and the

 

unemployment agency fails to receive a written response from the

 

employer or employing unit within 10 calendar days after the date

 

of mailing the request for information, the unemployment agency

 

shall make a determination based upon the available information at

 

the time the determination is made. Charges to the employer and

 

payments to the claimant shall be as described in section 20(a).

 

     (e) The claimant or interested party may file an application

 

with an office of the unemployment agency for a redetermination in

 

accordance with section 32a.

 

     (f) The issuance of each benefit check shall be considered a

 

determination by the unemployment agency that the claimant

 

receiving the check was covered during the compensable period, and


eligible and qualified for benefits. A chargeable employer, upon

 

receipt of a listing of the check as provided in section 21(a), may

 

protest by requesting a redetermination of the claimant's

 

eligibility or qualification as to that period and a determination

 

as to later weeks and benefits still unpaid that are affected by

 

the protest. Upon receipt of the protest or request, the

 

unemployment agency shall investigate and redetermine whether the

 

claimant is eligible and qualified as to that period. If, upon the

 

redetermination, the claimant is found ineligible or not qualified,

 

the unemployment agency shall proceed as described in section 62.

 

In addition, the unemployment agency shall investigate and

 

determine whether the claimant obtained benefits for 1 or more

 

preceding weeks within the series of consecutive weeks that

 

includes the week covered by the redetermination and, if so, shall

 

proceed as described in section 62 as to those weeks.

 

     (g) If a claimant commences to file continued claims through a

 

different state claim office in this state or elsewhere, the

 

unemployment agency promptly shall issue written notice of that

 

fact to the chargeable employer.

 

     (h) If a claimant refuses an offer of work, or fails to apply

 

for work of which the claimant has been notified, as provided in

 

section 29(1)(c) or (e), the unemployment agency shall promptly

 

make a written determination as to whether or not the refusal or

 

failure requires disqualification under section 29. Notice of the

 

determination, specifying the name and address of the employing

 

unit offering or giving notice of the work and of the chargeable

 

employer, shall be sent to the claimant, the employing unit


offering or giving notice of the work, and the chargeable employer.

 

     (i) The unemployment agency shall issue a notification to the

 

claimant of claimant rights and responsibilities within 2 weeks

 

after the initial benefit payment on a claim and 6 months after the

 

initial benefit payment on the claim. If the claimant selected a

 

preferred form of communication, the notification must be conveyed

 

by that form. Issuing the notification must not delay or interfere

 

with the claimant's benefit payment. The notification must contain

 

clear and understandable information pertaining to all of the

 

following:

 

     (i) Determinations as provided in section 62.

 

     (ii) Penalties and other sanctions as provided in this act.

 

     (iii) Legal right to protest the determination and the right

 

to appeal through the administrative hearing system.

 

     (iv) Other information needed to understand and comply with

 

agency rules and regulations not specified in this section.

 

     Sec. 54. (a) A person, including a claimant for unemployment

 

benefits, an employing entity, or an owner, director, or officer of

 

an employing entity, who willfully violates or intentionally fails

 

to comply with any of the provisions of this act, or a regulation

 

of the unemployment agency promulgated under the authority of this

 

act for which a penalty is not otherwise provided by this act is

 

subject to the following sanctions, notwithstanding any other

 

statute of this state or of the United States:

 

     (i) If the unemployment agency determines that an amount has

 

been obtained or withheld as a result of the intentional failure to

 

comply with this act, the unemployment agency may recover the


amount obtained as a result of the intentional failure to comply

 

plus damages equal to 3 times that amount.

 

     (ii) The unemployment agency may refer the matter to the

 

prosecuting attorney of the county in which the alleged violation

 

occurred for prosecution. If the unemployment agency has not made

 

its own determination under subdivision (i), the recovery sought by

 

the prosecutor shall include the amount described in subdivision

 

(i) and shall also include 1 or more of the following penalties:

 

     (A) Subject to redesignation under subsection (l), if the

 

amount obtained or withheld from payment as a result of the

 

intentional failure to comply is less than $25,000.00, then 1 of

 

the following:

 

     (I) Imprisonment for not more than 1 year.

 

     (II) The performance of community service of not more than 1

 

year but not to exceed 2,080 hours.

 

     (III) A combination of (I) and (II) that does not exceed 1

 

year.

 

     (B) If the amount obtained or withheld from payment as a

 

result of the intentional failure to comply is $25,000.00 or more

 

but less than $100,000.00, then 1 of the following:

 

     (I) Imprisonment for not more than 2 years.

 

     (II) The performance of community service of not more than 2

 

years but not to exceed 4,160 hours.

 

     (III) A combination of (I) and (II) that does not exceed 2

 

years.

 

     (C) If the amount obtained or withheld from payment as a

 

result of the intentional failure to comply is more than


$100,000.00, then 1 of the following:

 

     (I) Imprisonment for not more than 5 years.

 

     (II) The performance of community service of not more than 5

 

years but not to exceed 10,400 hours.

 

     (III) A combination of (I) and (II) that does not exceed 5

 

years.

 

     (iii) If the unemployment agency determines that an amount has

 

been obtained or withheld as a result of a knowing violation of

 

this act, the unemployment agency may recover the amount obtained

 

as a result of the knowing violation and may also recover damages

 

equal to 3 times that amount.

 

     (iv) The unemployment agency may refer a matter under

 

subdivision (iii) to the prosecuting attorney of the county in

 

which the alleged violation occurred for prosecution. If the

 

unemployment agency has not made its own determination under

 

subdivision (iii), the recovery sought by the prosecutor shall

 

include the amount described in subdivision (iii) and shall also

 

include 1 or more of the following penalties:

 

     (A) Subject to redesignation under subsection (l), if the

 

amount obtained or withheld from payment as a result of the knowing

 

violation is $100,000.00 or less, then 1 of the following:

 

     (I) Imprisonment for not more than 1 year.

 

     (II) The performance of community service of not more than 1

 

year but not to exceed 2,080 hours.

 

     (III) A combination of (I) and (II) that does not exceed 1

 

year.

 

     (B) If the amount obtained or withheld from payment as a


House Bill No. 4982 as amended December 8, 2016

result of the knowing violation is more than $100,000.00, then 1 of

 

the following:

 

     (I) Imprisonment for not more than 2 years.

 

     (II) The performance of community service of not more than 2

 

years but not to exceed 4,160 hours.

 

     (III) A combination of (I) and (II) that does not exceed 2

 

years.

 

     (b) Any employing unit or an owner, director, officer, or

 

agent of an employing unit, a claimant, an employee of the

 

unemployment agency, or any other person who makes a false

 

statement or representation knowing it to be false, or knowingly

 

and willfully with intent to defraud fails to disclose a material

 

fact, to obtain or increase a benefit or other payment under this

 

act or under the unemployment compensation law of any state or of

 

the federal government, either for himself or herself or any other

 

person, to prevent or reduce the payment of benefits to an

 

individual entitled thereto or to avoid becoming or remaining a

 

subject employer, or to avoid or reduce a contribution or other

 

payment required from an employing unit under this act or under the

 

unemployment compensation law of any state or of the federal

 

government, as applicable, is subject to administrative fines and

 

is punishable as follows, provided in this subsection,

 

notwithstanding any other penalties imposed under any other statute

 

of this state or of the United States. [For benefit years beginning on or

after May 1, 2017, to] establish fraud based on

unreported earnings under this subsection, the unemployment agency

 

must have in its possession the weekly wage information from the

 

employer. A violation of this subsection is punishable as follows:

     (i) If the amount obtained as a result of the knowing false

 

statement or representation or the knowing and willful failure to

 

disclose a material fact is less than $500.00, the unemployment

 

agency may recover the amount obtained as a result of the knowing

 

false statement or representation or the knowing and willful

 

failure to disclose a material fact and may also recover damages

 

equal to 2 times that amount. For a second or subsequent violation

 

described in this subdivision, the unemployment agency may recover

 

damages equal to 4 times the amount obtained.

 

     (ii) If the amount obtained as a result of the knowing false

 

statement or representation or the knowing and willful failure to

 

disclose a material fact is $500.00 or more, the unemployment

 

agency shall attempt to recover the amount obtained as a result of

 

the knowing false statement or representation or the knowing and

 

willful failure to disclose a material fact and may also recover

 

damages equal to 4 times that amount. The unemployment agency may

 

refer the matter to the prosecuting attorney of the county in which

 

the alleged violation occurred for prosecution. If the unemployment

 

agency has not made its own determination under this subdivision,

 

the recovery sought by the prosecutor shall include the amount

 

described in this subdivision and shall also include 1 or more of

 

the following penalties if the amount obtained is $1,000.00 or

 

more:

 

     (A) Subject to redesignation under subsection (l), if the

 

amount obtained or withheld from payment as a result of the knowing

 

false statement or representation or the knowing and willful

 

failure to disclose a material fact is $1,000.00 or more but less


than $25,000.00, then 1 of the following:

 

     (I) Imprisonment for not more than 1 year.

 

     (II) The performance of community service of not more than 1

 

year but not to exceed 2,080 hours.

 

     (III) A combination of (I) and (II) that does not exceed 1

 

year.

 

     (B) If the amount obtained or withheld from payment as a

 

result of the knowing false statement or representation or the

 

knowing and willful failure to disclose a material fact is

 

$25,000.00 or more, then 1 of the following:

 

     (I) Imprisonment for not more than 2 years.

 

     (II) The performance of community service of not more than 2

 

years but not to exceed 4,160 hours.

 

     (III) A combination of (I) and (II) that does not exceed 2

 

years.

 

     (C) If the knowing false statement or representation or the

 

knowing and willful failure to disclose a material fact made to

 

obtain or withhold an amount from payment does not result in a loss

 

to the commission, then a recovery shall be sought equal to 3 times

 

the amount that would have been obtained by the knowing false

 

statement or representation or the knowing and willful failure to

 

disclose a material fact, but not less than $1,000.00, and 1 of the

 

following:

 

     (I) Imprisonment for not more than 2 years.

 

     (II) The performance of community service of not more than 2

 

years but not to exceed 4,160 hours.

 

     (III) A combination of (I) and (II) that does not exceed 2


years.

 

     (c) (1) Any employing unit or an owner, director, officer, or

 

agent of an employing unit or any other person failing to submit,

 

when due, any contribution report, wage and employment report, or

 

other reports lawfully prescribed and required by the unemployment

 

agency shall be subject to the assessment of an administrative fine

 

for each report not submitted within the time prescribed by the

 

unemployment agency, as follows: In the case of contribution

 

reports not received within 10 days after the end of the reporting

 

month the fine shall be 10% of the contributions due on the reports

 

but not less than $5.00 or more than $25.00 for a report. However,

 

if the tenth day falls on a Saturday, Sunday, legal holiday, or

 

other unemployment agency nonwork day, the 10-day period shall run

 

until the end of the next day that is not a Saturday, Sunday, legal

 

holiday, or other unemployment agency nonwork day. In the case of

 

all other reports referred to in this subsection, the fine shall be

 

$10.00 for a report.

 

     (2) Notwithstanding subdivision (1), any employer or an owner,

 

director, officer, or agent of an employer or any other person

 

failing to submit, when due, any quarterly wage detail report

 

required by section 13(2), or submitting an incomplete or erroneous

 

report, is subject to an administrative fine of $50.00 for each

 

untimely report, incomplete report, or erroneous report if the

 

report is filed not later than 30 days after the date the report is

 

due, $250.00 if the report is filed more than 1 calendar quarter

 

after the date the report is due, and an additional $250.00 for

 

each additional calendar quarter that the report is late, except


that no penalty shall apply if the employer files a corrected

 

report within 14 days after notification of an error by the agency.

 

     (3) If a report is filed after the prescribed time and it is

 

shown to the satisfaction of the commission that the failure to

 

submit the report was due to reasonable cause, a fine shall not be

 

imposed. The assessment of a fine as provided in this subsection

 

constitutes a final determination unless the employer files an

 

application with the unemployment agency for a redetermination of

 

the assessment in accordance with section 32a.

 

     (d) If any employee or agent of the unemployment agency or

 

member of the Michigan compensation appellate commission willfully

 

discloses confidential information obtained from any employing unit

 

or individual in the administration of this act for any purpose

 

inconsistent with or contrary to the purposes of this act, or a

 

person who obtains a list of applicants for work or of claimants or

 

recipients of benefits under this act uses or permits use of that

 

list for a political purpose or for a purpose inconsistent with or

 

contrary to the purposes of this act, he or she is guilty of a

 

misdemeanor punishable by imprisonment for not more than 90 days or

 

a fine of not more than $1,000.00, or both. Notwithstanding the

 

preceding sentence, if any unemployment agency employee, agent of

 

the unemployment agency, or member of the Michigan compensation

 

appellate commission knowingly, intentionally, and for financial

 

gain, makes an illegal disclosure of confidential information

 

obtained under section 13(2), he or she is guilty of a felony,

 

punishable by imprisonment for not more than 1 year and 1 day.

 

     (e) A person who, without proper authority from the


unemployment agency, represents himself or herself to be an

 

employee of the unemployment agency for the purpose of securing

 

information regarding the unemployment or employment record of an

 

individual is guilty of a misdemeanor punishable by imprisonment

 

for not more than 90 days or a fine of not more than $1,000.00, or

 

both.

 

     (f) A person associated with a college, university, or public

 

agency of this state who makes use of any information obtained from

 

the unemployment agency in connection with a research project of a

 

public service nature, in a manner as to reveal the identity of any

 

individual or employing unit from or concerning whom the

 

information was obtained by the unemployment agency, or for any

 

purpose other than use in connection with that research project, is

 

guilty of a misdemeanor punishable by imprisonment for not more

 

than 90 days or a fine of not more than $1,000.00, or both.

 

     (g) As used in this section, "person" includes an individual;

 

owner, director, or officer of an employing entity; copartnership;

 

joint venture; corporation; receiver; or trustee in bankruptcy.

 

     (h) This section applies even if the amount obtained or

 

withheld from payment has been reported or reported and paid by an

 

individual involved in a violation of subsection (a) or (b).

 

     (i) If a determination is made that an individual has violated

 

this section, the individual is subject to the sanctions of this

 

section and, if applicable, the requirements of section 62.

 

     (j) Amounts recovered by the commission under subsection (a)

 

shall be credited first to the unemployment compensation fund and

 

thereafter amounts recovered that are in excess of the amounts


obtained or withheld as a result of the violation of subsection (a)

 

shall be credited to the penalty and interest account of the

 

contingent fund. Amounts recovered by the commission under

 

subsections (c), (d), (e), and (f) shall be credited to the penalty

 

and interest account of the contingent fund in accordance with

 

section 10(6).

 

     (k) Amounts recovered by the unemployment agency under

 

subsection (b) shall be credited in the following order:

 

     (i) From the penalty assessment recovered, an amount equal to

 

15% of any benefit overpayments resulting from fraud shall be

 

credited to the unemployment compensation fund.

 

     (ii) For the balance of deductions from unemployment insurance

 

benefits, to the liability for benefit repayment under this

 

section.

 

     (iii) For all other recoveries, the balance shall first be

 

credited to the unemployment compensation fund for repayment of any

 

remaining amounts owed, and then to the contingent fund to be

 

applied first to administrative sanctions and damages and then to

 

interest.

 

     (l) A person who obtains or withholds an amount of

 

unemployment benefits or payments exceeding $3,500.00 but less than

 

$25,000.00 as a result of a knowing false statement or

 

representation or the knowing and willful failure to disclose a

 

material fact is guilty of a felony punishable as provided in

 

subsection (a)(ii)(A) or (iv)(A) or subsection (b)(ii)(A).

 

     (m) An unemployment agency determination under this section

 

shall not be based solely on a computer-identified discrepancy in


information supplied by the claimant or employer. An unemployment

 

agency employee or agent must examine the facts and independently

 

determine that the claimant or the employer is responsible for a

 

willful or intentional violation before the agency makes a

 

determination under this section.

 

     Sec. 62. (a) If the unemployment agency determines that a

 

person has obtained benefits to which that person is not entitled,

 

or a subsequent determination by the agency or a decision of an

 

appellate authority reverses a prior qualification for benefits,

 

the agency may recover a sum equal to the amount received plus

 

interest by 1 or more of the following methods: deduction from

 

benefits or wages payable to the individual, payment by the

 

individual in cash, or deduction from a tax refund payable to the

 

individual as provided under section 30a of 1941 PA 122, MCL

 

205.30a. Deduction from benefits or wages payable to the individual

 

is limited to not more than 50% of each payment due the claimant.

 

The unemployment agency shall issue a determination requiring

 

restitution within 3 years after the date of finality of a

 

determination, redetermination, or decision reversing a previous

 

finding of benefit entitlement. The Except in the case of benefits

 

improperly paid because of suspected identity fraud, the

 

unemployment agency shall not initiate administrative or court

 

action to recover improperly paid benefits from an individual more

 

than 3 years after the date that the last determination,

 

redetermination, or decision establishing restitution is final. The

 

Except in the case of benefits improperly paid because of suspected

 

identity fraud, the unemployment agency shall issue a determination


on an issue within 3 years from the date the claimant first

 

received benefits in the benefit year in which the issue arose, or

 

in the case of an issue of intentional false statement,

 

misrepresentation, or concealment of material information in

 

violation of section 54(a) or (b) or sections 54a to 54c, within 6

 

3 years after the receipt of the improperly paid benefits unless

 

the unemployment agency filed a civil action in a court within the

 

3-year or 6-year period; the individual made an intentional false

 

statement, misrepresentation, or concealment of material

 

information to obtain the benefits; or the unemployment agency

 

issued a determination requiring restitution within the 3-year or

 

6-year period. The time limits in this section do not prohibit the

 

unemployment agency from pursuing collection methods to recover the

 

amounts found to have been improperly paid. Except in a case of an

 

intentional false statement, misrepresentation, or concealment of

 

material information, the unemployment agency shall waive recovery

 

of an improperly paid benefit if the payment was not the fault of

 

the individual and if repayment would be contrary to equity and

 

good conscience and shall waive any interest. If the agency or an

 

appellate authority waives collection of restitution and interest,

 

except as provided in subdivision (ii), the waiver is prospective

 

and does not apply to restitution and interest payments already

 

made by the individual. As used in this subsection, "contrary to

 

equity and good conscience" means any of the following:

 

     (i) The claimant provided incorrect wage information without

 

the intent to misrepresent, and the employer provided either no

 

wage information upon request or provided inaccurate wage


information that resulted in the overpayment.

 

     (ii) The claimant's disposable household income, exclusive of

 

social welfare benefits, is at or below the annual update of the

 

poverty guidelines most recently published in the federal register

 

Federal Register by the United States department Department of

 

health Health and human services Human Services under the authority

 

of 42 USC 9902(2), and the claimant has applied for a waiver under

 

this subsection. A waiver granted under the conditions described in

 

this subdivision applies from the date the application is filed.

 

     (iii) The improper payments resulted from an administrative or

 

clerical error by the unemployment agency. A requirement to repay

 

benefits as the result of a change in judgment at any level of

 

administrative adjudication or court decision concerning the facts

 

or application of law to a claim adjudication is not an

 

administrative or clerical error for purposes of this subdivision.

 

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

 

if the 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

 

claimant made the false statement or misrepresentation or concealed

 

material information, and wages used to establish that benefit year

 

shall not be used to establish another benefit year. A chargeable


employer may protest a claim filed after October 1, 2014 to

 

establish a successive benefit year under section 46(c), if there

 

was a determination by the unemployment agency or decision of a

 

court or administrative tribunal finding that the claimant made a

 

false statement, made a misrepresentation, or concealed material

 

information related to his or her report of earnings for a

 

preceding benefit year claim. If a protest is made, any unreported

 

earnings from the preceding benefit year that were falsely stated,

 

misrepresented, or concealed shall not be used to establish a

 

benefit year for a successive claim. Before receiving benefits in a

 

benefit year established within 4 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 for an additional amount as otherwise

 

determined by the unemployment agency under this act, which may be

 

paid by cash, deduction from benefits, or deduction from a tax

 

refund. The individual is liable for any fee the federal government

 

imposes with respect to instituting a deduction from a federal tax

 

refund. Restitution resulting from the intentional false statement,

 

misrepresentation, or concealment of material information is not

 

subject to the 50% limitation provided in subsection (a).

 

     (c) Any determination made by the unemployment agency under

 

this section is final unless an application for a redetermination

 

is filed in accordance with section 32a.

 

     (d) The 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). The


unemployment agency may conduct an amnesty program for a designated

 

period under which penalties and interest assessed against an

 

individual owing restitution for improperly paid benefits may be

 

waived if the individual pays the full amount of restitution owing

 

within the period specified by the agency.

 

     (e) Interest recovered under this section shall be deposited

 

in the contingent fund.

 

     (f) An unemployment agency determination that a claimant made

 

an intentional false statement, misrepresentation, or concealment

 

of material information that is subject to sanctions under this

 

section shall not be based solely on a computer-identified

 

discrepancy in information supplied by the claimant or employer. An

 

unemployment agency employee or agent must examine the facts and

 

independently determine that the claimant or the employer is

 

responsible for a willful or intentional violation before the

 

agency makes a determination under this section.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.