May 31, 2016, Introduced by Senators WARREN, ANANICH, HOOD, BIEDA and KNEZEK 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 2013 PA 147.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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 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 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
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. 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
by the United States department of health and 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 must make 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), but
shall not seek or collect restitution of or interest on
unemployment benefits that the unemployment agency did not pay. 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.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 98th Legislature are
enacted into law:
(a) Senate Bill No. 1002.
(b) Senate Bill No. 1003.
(c) Senate Bill No. 1000.