HOUSE BILL No. 4142 February 6, 2001, Introduced by Rep. Jelinek and referred to the Committee on Employment Relations, Training and Safety. A bill to amend 1936 (Ex Sess) PA 1, entitled "Michigan employment security act," by amending section 27 (MCL 421.27), as amended by 1995 PA 181. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 27. (a)(1) When a determination, redetermination, or 2 decision is made that benefits are due an unemployed individual, 3 the benefits shall immediately become payable from the fund and 4 continue to be payable to the unemployed individual, subject to 5 the limitations imposed by the individual's monetary entitlement, 6as long asIF the individual continues to be unemployed and to 7 file claims for benefits, until the determination, redetermina- 8 tion, or decision is reversed, a determination, redetermination, 9 or decision on a new issue holding the individual disqualified or 10 ineligible is made, or, for benefit years beginning before the 00019'01 FDD 2 1 conversion date prescribed in section 75, a new separation issue 2 arises resulting from subsequent work. 3 (2) Benefits shall be paid in person or by mail through 4 employment offices in accordance with rules promulgated by the 5 commission. 6 (b)(1) Subject to subsection (f), the weekly benefit rate 7 for an individual, with respect to benefit years beginning before 8 the conversion date prescribed in section 75, shall be 67% of the 9 individual's average after tax weekly wage, except that the 10 individual's maximum weekly benefit rate shall not exceed 11 $300.00. However, with respect to benefit years beginning after 12 the conversion date as prescribed in section 75, the individual's 13 weekly benefit rate shall be 4.1% of the individual's wages paid 14 in the calendar quarter of the base period in which the individ- 15 ual was paid the highest total wages, plus $6.00 for each depen- 16 dent as defined in subdivision (3), up to a maximum of 5 depen- 17 dents, claimed by the individual at the time the individual files 18 a new claim for benefits, except that the individual's maximum 19 weekly benefit rate shall not exceed $300.00. With respect to 20 benefit years beginning on or after October 2, 1983, the weekly 21 benefit rate shall be adjusted to the next lower multiple of 22 $1.00. 23 (2) For benefit years beginning before the conversion date 24 prescribed in section 75, the state average weekly wage for a 25 calendar year shall be computed on the basis of the 12 months 26 ending the June 30 immediately preceding that calendar year. The 27 commission shall prepare a table of weekly benefit rates based on 00019'01 3 1 an "average after tax weekly wage" calculated by subtracting, 2 from an individual's average weekly wage as determined in accord- 3 ance with section 51, a reasonable approximation of the weekly 4 amount required to be withheld by the employer from the remunera- 5 tion of the individual based on dependents and exemptions for 6 income taxes under SUBCHAPTER A OF chapter 24 of subtitle C of 7 the internal revenue code of 1986, 26 U.S.C. 3401 to 3406, and 8 under section 351 of the income tax act of 1967,Act No. 281 of9the Public Acts of 1967, being section 206.351 of the Michigan10Compiled Laws1967 PA 281, MCL 206.351, and for old age and 11 survivor's disability insurance taxes under the federal insurance 12 contributions act, chapter 21 of subtitle C of the internal reve- 13 nue code of 1986, 26 U.S.C. 3101 TO 3128. For purposes of apply- 14 ing the table to an individual's claim, a dependent shall be as 15 defined in subdivision (3). The table applicable to an 16 individual's claim shall be the table reflecting the number of 17 dependents claimed by the individual under subdivision (3). The 18 commission shall adjust the tables based on changes in withhold- 19 ing schedules published by the United States department of trea- 20 sury, internal revenue service, and by the department of 21 treasury. The number of dependents allowed shall be determined 22 with respect to each week of unemployment for which an individual 23 is claiming benefits. 24 (3) For benefit years beginning before the conversion date 25 prescribed in section 75, a dependent means any of the following 26 persons who is receiving and for at least 90 consecutive days 27 immediately preceding the week for which benefits are claimed, 00019'01 4 1 or, in the case of a dependent husband, wife, or child, for the 2 duration of the marital or parental relationship, if the rela- 3 tionship has existed less than 90 days, has received more than 4 half the cost of his or her support from the individual claiming 5 benefits: 6 (a) A child, including stepchild, adopted child, or grand- 7 child of the individual who is under 18 years of age, or 18 years 8 of age or over if, because of physical or mental infirmity, the 9 child is unable to engage in a gainful occupation, or is a 10 full-time student as defined by the particular educational insti- 11 tution, at a high school, vocational school, community or junior 12 college, or college or university and has not attained the age of 13 22. 14 (b) The husband or wife of the individual. 15 (c) The legal father or mother of the individual if that 16 parent is either more than 65 years of age or is permanently dis- 17 abled from engaging in a gainful occupation. 18 (d) A brother or sister of the individual if the brother or 19 sister is orphaned or the living parents are dependent parents of 20 an individual, and the brother or sister is under 18 years of 21 age, or 18 years of age or over if, because of physical or mental 22 infirmity, the brother or sister is unable to engage in a gainful 23 occupation, or is a full-time student as defined by the particu- 24 lar educational institution, at a high school, vocational school, 25 community or junior college, or college or university and is less 26 than 22 years of age. 00019'01 5 1 (4) For benefit years beginning after the conversion date 2 prescribed in section 75, a dependent means any of the following 3 persons who received for at least 90 consecutive days immediately 4 preceding the first week of the benefit year or, in the case of a 5 dependent husband, wife, or child, for the duration of the mari- 6 tal or parental relationship if the relationship existed less 7 than 90 days before the beginning of the benefit year, has 8 received more than 1/2 the cost of his or her support from the 9 individual claiming the benefits: 10 (a) A child, including stepchild, adopted child, or grand- 11 child of the individual who is under 18 years of age, or 18 years 12 of age and over if, because of physical or mental infirmity, the 13 child is unable to engage in a gainful occupation, or is a 14 full-time student as defined by the particular educational insti- 15 tution, at a high school, vocational school, community or junior 16 college, or college or university and has not attained the age of 17 22. 18 (b) The husband or wife of the individual. 19 (c) The legal father or mother of the individual if that 20 parent is either more than 65 years of age or is permanently dis- 21 abled from engaging in a gainful occupation. 22 (d) A brother or sister of the individual if the brother or 23 sister is orphaned or the living parents are dependent parents of 24 an individual, and the brother or sister is under 18 years of 25 age, or 18 years of age and over if, because of physical or 26 mental infirmity, the brother or sister is unable to engage in a 27 gainful occupation, or is a full-time student as defined by the 00019'01 6 1 particular educational institution, at a high school, vocational 2 school, community or junior college, or college or university and 3 is less than 22 years of age. 4 (5) For benefit years beginning before the conversion date 5 prescribed in section 75, dependency status of a dependent, child 6 or otherwise, once established or fixed in favor of an individual 7 continues during the individual's benefit year until terminated. 8 Dependency status of a dependent terminates at the end of the 9 week in which the dependent ceases to be an individual described 10 in subdivision (3)(a), (b), (c), or (d) because of age, death, or 11 divorce. For benefit years beginning after the conversion date 12 prescribed in section 75, the number of dependents established 13 for an individual at the beginning of the benefit year shall 14 remain in effect during the entire benefit year. 15 (6) For benefit years beginning before the conversion date 16 prescribed in section 75, failure on the part of an individual, 17 due to misinformation or lack of information, to furnish all 18 information material for determination of the number of the 19 individual's dependents when the individual files a claim for 20 benefits with respect to a week shall be considered good cause 21 for the issuance of a redetermination as to the amount of bene- 22 fits based on the number of the individual's dependents as of the 23 beginning date of that week. Dependency status of a dependent, 24 child or otherwise, once established or fixed in favor of a 25 person is not transferable to or usable by another person with 26 respect to the same week. 00019'01 7 1 For benefit years beginning after the conversion date as 2 prescribed in section 75, failure on the part of an individual, 3 due to misinformation or lack of information, to furnish all 4 information material for determination of the number of the 5 individual's dependents shall be considered good cause for the 6 issuance of a redetermination as to the amount of benefits based 7 on the number of the individual's dependents as of the beginning 8 of the benefit year. 9 (c) Subject to subsection (f), all of the following apply to 10 eligible individuals: 11 (1) Each eligible individual shall be paid a weekly benefit 12 rate with respect to the week for which the individual earns or 13 receives no remuneration. 14 Notwithstanding the definition of week as contained in 15 section 50, if within 2 consecutive weeks in which an individual 16 was not unemployed within the meaning of section 48 there was a 17 period of 7 or more consecutive days for which the individual did 18 not earn or receive remuneration, that period shall be considered 19 a week for benefit purposes under this act if a claim for bene- 20 fits for that period is filed not later than 30 day s subsequent 21 to the end of the period. 22 (2) Each eligible individual shall have his or her weekly 23 benefit rate reduced with respect to each week in which the indi- 24 vidual earns or receives remuneration at the rate of 50 cents for 25 each whole $1.00 of remuneration earned or received during that 26 week. 00019'01 8 1 (3) An individual who receives or earns partial remuneration 2 may not receive a total of benefits and earnings that exceeds 3 1-1/2 times his or her weekly benefit amount. For each dollar of 4 total benefits and earnings that exceeds 1-1/2 times the 5 individual's weekly benefit amount, benefits shall be reduced by 6 $1.00. 7 (4) If the reduction in a claimant's benefit rate for a week 8 in accordance with subparagraph (2) or (3) results in a benefit 9 rate greater than zero for that week, the claimant's balance of 10 weeks of benefit payments will be reduced by 1 week. 11 (5) All remuneration for work performed during a shift that 12 terminates on 1 day but that began on the preceding day shall be 13 considered to have been earned by the eligible individual on the 14 preceding day. 15 (d) For benefit years beginning before the conversion date 16 prescribed in section 75, and subject to subsection (f) and this 17 subsection, the amount of benefits to which an individual who is 18 otherwise eligible is entitled during a benefit year from an 19 employer with respect to employment during the base period is the 20 amount obtained by multiplying the weekly benefit rate with 21 respect to that employment by 3/4 of the number of credit weeks 22 earned in the employment. For the purpose of this subsection and 23 section 20(c), if the resultant product is not an even multiple 24 of 1/2 the weekly benefit rate, the product shall be raised to an 25 amount equal to the next higher multiple of 1/2 the weekly bene- 26 fit rate, and, for an individual who was employed by only 1 27 employer in the individual's base period and earned 34 credit 00019'01 9 1 weeks with that employer, the product shall be raised to the next 2 higher multiple of the weekly benefit rate. The maximum amount 3 of benefits payable to an individual within a benefit year, with 4 respect to employment by an employer, shall not exceed 26 times 5 the weekly benefit rate with respect to that employment. The 6 maximum amount of benefits payable to an individual within a ben- 7 efit year shall not exceed the amount to which the individual 8 would be entitled for 26 weeks of unemployment in which remunera- 9 tion was not earned or received. The limitation of total bene- 10 fits set forth in this subsection does not apply to claimants 11 declared eligible for training benefits in accordance with 12 subsection (g). For benefit years beginning after the conversion 13 date prescribed in section 75, and subject to subsection (f) and 14 this subsection, the maximum benefit amount payable to an indi- 15 vidual in a benefit year for purposes of this section and 16 section 20(c) is the number of weeks of benefits payable to an 17 individual during the benefit year, multiplied by the 18 individual's weekly benefit rate. The number of weeks of bene- 19 fits payable to an individual shall be calculated by taking 40% 20 of the individual's base period wages and dividing the result by 21 the individual's weekly benefit rate. If the quotient is not a 22 whole or half number, the result shall be rounded down to the 23 nearest half number. However, not more than 26 weeks of benefits 24 or less than 14 weeks of benefits shall be payable to an individ- 25 ual in a benefit year. The limitation of total benefits set 26 forth in this subsection shall not apply to claimants declared 00019'01 10 1 eligible for training benefits in accordance with 2 subsection (g). 3 (e) When a claimant dies or is judicially declared insane or 4 mentally incompetent, unemployment compensation benefits accrued 5 and payable to that person for weeks of unemployment before 6 death, insanity, or incompetency, but not paid, shall become due 7 and payable to the person who is the legal heir or guardian of 8 the claimant or to any other person found by the commission to be 9 equitably entitled to the benefits by reason of having incurred 10 expense in behalf of the claimant for the claimant's burial or 11 other necessary expenses. 12 (f)(1) For benefit years beginning before the conversion 13 date prescribed in section 75, and notwithstanding any inconsis- 14 tent provisions of this act, the weekly benefit rate of each 15 individual who is receiving or will receive a "retirement 16 benefit", as defined in subdivision (4), shall be adjusted as 17 provided in subparagraphs (a), (b), and (c). However, an 18 individual's extended benefit account and an individual's weekly 19 extended benefit rate under section 64 shall be established with- 20 out reduction under this subsection unless subdivision (5) is in 21 effect. Except as otherwise provided in this subsection, all 22 other provisions of this act continue to apply in connection with 23 the benefit claims of those retired persons. 24 (a) If and to the extent that unemployment benefits payable 25 under this act would be chargeable to an employer who has con- 26 tributed to the financing of a retirement plan under which the 27 claimant is receiving or will receive a retirement benefit 00019'01 11 1 yielding a pro rata weekly amount equal to or larger than the 2 claimant's weekly benefit rate as otherwise established under 3 this act, the claimant shall not receive unemployment benefits 4 that would be chargeable to the employer under this act. 5 (b) If and to the extent that unemployment benefits payable 6 under this act would be chargeable to an employer who has con- 7 tributed to the financing of a retirement plan under which the 8 claimant is receiving or will receive a retirement benefit yield- 9 ing a pro rata weekly amount less than the claimant's weekly ben- 10 efit rate as otherwise established under this act, then the 11 weekly benefit rate otherwise payable to the claimant and charge- 12 able to the employer under this act shall be reduced by an amount 13 equal to the pro rata weekly amount, adjusted to the next lower 14 multiple of $1.00, which the claimant is receiving or will 15 receive as a retirement benefit. 16 (c) If the unemployment benefit payable under this act would 17 be chargeable to an employer who has not contributed to the 18 financing of a retirement plan under which the claimant is 19 receiving or will receive a retirement benefit, then the weekly 20 benefit rate of the claimant as otherwise established under this 21 act shall not be reduced due to receipt of a retirement benefit. 22 (d) If the unemployment benefit payable under this act is 23 computed on the basis of multiemployer credit weeks and a portion 24 of the benefit is allocable under section 20(e) to an employer 25 who has contributed to the financing of a retirement plan under 26 which the claimant is receiving or will receive a retirement 27 benefit, the adjustments required by subparagraph (a) or (b) 00019'01 12 1 apply only to that portion of the weekly benefit rate that would 2 otherwise be allocable and chargeable to the employer. 3 (2) If an individual's weekly benefit rate under this act 4 was established before the period for which the individual first 5 receives a retirement benefit, any benefits received after a 6 retirement benefit becomes payable shall be determined in accord- 7 ance with the formula stated in this subsection. 8 (3) When necessary to assure prompt payment of benefits, the 9 commission shall determine the pro rata weekly amount yielded by 10 an individual's retirement benefit based on the best information 11 currently available to it. In the absence of fraud, a determina- 12 tion shall not be reconsidered unless it is established that the 13 individual's actual retirement benefit in fact differs from the 14 amount determined by $2.00 or more per week. The reconsideration 15 shall apply only to benefits as may be claimed after the informa- 16 tion on which the reconsideration is based was received by the 17 commission. 18 (4)(a) As used in this subdivision, "retirement benefit" 19 means a benefit, annuity, or pension of any type or that part 20 thereof that is described in subparagraph (b) that is: 21 (i) Provided as an incident of employment under an estab- 22 lished retirement plan, policy, or agreement, including federal 23 social security if subdivision (5) is in effect. 24 (ii) Payable to an individual because the individual has 25 qualified on the basis of attained age, length of service, or 26 disability, whether or not the individual retired or was retired 27 from employment. Amounts paid to individuals in the course of 00019'01 13 1 liquidation of a private pension or retirement fund because of 2 termination of the business or of a plant or department of the 3 business of the employer involved shall not be considered to be 4 retirement benefits. 5 (b) If a benefit as described in subparagraph (a) is payable 6 or paid to the individual under a plan to which the individual 7 has contributed: 8 (i) Less than half of the cost of the benefit, then only 9 half of the benefit shall be treated as a retirement benefit. 10 (ii) Half or more of the cost of the benefit, then none of 11 the benefit shall be treated as a retirement benefit. 12 (c) The burden of establishing the extent of an individual's 13 contribution to the cost of his or her retirement benefit for the 14 purpose of subparagraph (b) is upon the employer who has contrib- 15 uted to the plan under which a benefit is provided. 16 (5) Notwithstanding any other provision of this subsection, 17 for any week that begins after March 31, 1980, and with respect 18 to which an individual is receiving a governmental or other pen- 19 sion and claiming unemployment compensation, the weekly benefit 20 amount payable to the individual for those weeks shall be 21 reduced, but not below zero, by the entire prorated weekly amount 22 of any governmental or other pension, retirement or retired pay, 23 annuity, or any other similar payment that is based on any previ- 24 ous work of the individual. This reduction shall be made only if 25 it is required as a condition for full tax credit against the tax 26 imposed by the federal unemployment tax act, chapter 23 of 00019'01 14 1 subtitle C of the internal revenue code of 1986, 26 U.S.C. 3301 2 to 3311. 3 (6) For benefit years beginning after the conversion date 4 prescribed in section 75, notwithstanding any inconsistent provi- 5 sions of this act, the weekly benefit rate of each individual who 6 is receiving or will receive a retirement benefit, as defined in 7 subdivision (4), shall be adjusted as provided in 8 subparagraphs (a), (b), and (c). However, an individual's 9 extended benefit account and an individual's weekly extended ben- 10 efit rate under section 64 shall be established without reduction 11 under this subsection, unless subdivision (5) is in effect. 12 Except as otherwise provided in this subsection, all the other 13 provisions of this act shall continue to be applicable in connec- 14 tion with the benefit claims of those retired persons. 15 (a) If any base period or chargeable employer has contrib- 16 uted to the financing of a retirement plan under which the claim- 17 ant is receiving or will receive a retirement benefit yielding a 18 pro rata weekly amount equal to or larger than the claimant's 19 weekly benefit rate as otherwise established under this act, the 20 claimant shall not receive unemployment benefits. 21 (b) If any base period employer or chargeable employer has 22 contributed to the financing of a retirement plan under which the 23 claimant is receiving or will receive a retirement benefit yield- 24 ing a pro rata weekly amount less than the claimant's weekly ben- 25 efit rate as otherwise established under this act, then the 26 weekly benefit rate otherwise payable to the claimant shall be 27 reduced by an amount equal to the pro rata weekly amount, 00019'01 15 1 adjusted to the next lower multiple of $1.00, which the claimant 2 is receiving or will receive as a retirement benefit. 3 (c) If no base period or separating employer has contributed 4 to the financing of a retirement plan under which the claimant is 5 receiving or will receive a retirement benefit, then the weekly 6 benefit rate of the claimant as otherwise established under this 7 act shall not be reduced due to receipt of a retirement benefit. 8 (g) Notwithstanding any other provision of this act, an 9 individual pursuing vocational training or retraining pursuant to 10 section 28(2) who has exhausted all benefits available under 11 subsection (d) may be paid for each week of approved vocational 12 training pursued beyond the date of exhaustion a benefit amount 13 in accordance with subsection (c), but not in excess of the 14 individual's most recent weekly benefit rate. However, an indi- 15 vidual shall not be paid training benefits totaling more than 18 16 times the individual's most recent weekly benefit rate. The 17 expiration or termination of a benefit year shall not stop or 18 interrupt payment of training benefits if the training for which 19 the benefits were granted began before expiration or termination 20 of the benefit year. 21 (h) A payment of accrued unemployment benefits shall not be 22 made to an eligible individual or in behalf of that individual as 23 provided in subsection (e) more than 6 years after the ending 24 date of the benefit year covering the payment or 2 calendar years 25 after the calendar year in which there is final disposition of a 26 contested case, whichever is later. 00019'01 16 1 (i) Benefits based on service in employment described in 2 section 42(8), (9), and (10) are payable in the same amount, on 3 the same terms, and subject to the same conditions as compensa- 4 tion payable on the basis of other service subject to this act, 5 except that: 6 (1) With respect to service performed in an instructional, 7 research, or principal administrative capacity for an institution 8 of higher education as defined in section 53(2), or for an educa- 9 tional institution other than an institution of higher education 10 as defined in section 53(3), benefits shall not be paid to an 11 individual based on those services for any week of unemployment 12 beginning after December 31, 1977 that commences during the 13 period between 2 successive academic years or during a similar 14 period between 2 regular terms, whether or not successive, or 15 during a period of paid sabbatical leave provided for in the 16 individual's contract, to an individual if the individual per- 17 forms the service in the first of the academic years or terms and 18 if there is a contract or a reasonable assurance that the indi- 19 vidual will perform service in an instructional, research, or 20 principal administrative capacity for an institution of higher 21 education or an educational institution other than an institution 22 of higher education in the second of the academic years or terms, 23 whether or not the terms are successive. 24 (2) With respect to service performed in other than an 25 instructional, research, or principal administrative capacity for 26 an institution of higher education as defined in section 53(2) or 27 for an educational institution other than an institution of 00019'01 17 1 higher education as defined in section 53(3), benefits shall not 2 be paid based on those services for any week of unemployment 3 beginning after December 31, 1977 that commences during the 4 period between 2 successive academic years or terms to any indi- 5 vidual if that individual performs the service in the first of 6 the academic years or terms and if there is a reasonable assur- 7 ance that the individual will perform the service for an institu- 8 tion of higher education or an educational institution other than 9 an institution of higher education in the second of the academic 10 years or terms. 11 (3) With respect to any service described in subdivision (1) 12 or (2), benefits shall not be paid to an individual based upon 13 service for any week of unemployment that commences during an 14 established and customary vacation period or holiday recess if 15 the individual performs the service in the period immediately 16 before the vacation period or holiday recess and there is a con- 17 tract or reasonable assurance that the individual will perform 18 the service in the period immediately following the vacation 19 period or holiday recess. 20 (4) If benefits are denied to an individual for any week 21 solely as a result of subdivision (2) and the individual was not 22 offered an opportunity to perform in the second academic year or 23 term the service for which reasonable assurance had been given, 24 the individual is entitled to a retroactive payment of benefits 25 for each week for which the individual had previously filed a 26 timely claim for benefits. An individual entitled to benefits 00019'01 18 1 under this subdivision may apply for those benefits by mail in 2 accordance with R 421.210 as promulgated by the commission. 3 (5) The amendments to subdivision (2) made byAct No. 2194of the Public Acts of 19831983 PA 219 apply to all claims for 5 unemployment compensation that are filed on and after October 31, 6 1983. However, the amendments are retroactive to September 5, 7 1982 only if, as a condition for full tax credit against the tax 8 imposed by the federal unemployment tax act, chapter 23 of 9 subtitle C of the internal revenue code of 1986, 26 U.S.C. 3301 10 to 3311, the United States secretary of labor determines that 11 retroactivity is required by federal law. 12 (6) Notwithstanding subdivision (2), on and after April 1, 13 1984 benefits based upon services in other than an instructional, 14 research, or principal administrative capacity for an institution 15 of higher education shall not be denied for any week of unemploy- 16 ment commencing during the period between 2 successive academic 17 years or terms solely because the individual had performed the 18 service in the first of the academic years or terms and there is 19 reasonable assurance that the individual will perform the service 20 for an institution of higher education or an educational institu- 21 tion other than an institution of higher education in the second 22 of the academic years or terms, unless a denial is required as a 23 condition for full tax credit against the tax imposed by the fed- 24 eral unemployment tax act, chapter 23 of subtitle C of the inter- 25 nal revenue code of 1986, 26 U.S.C. 3301 to 3311. 26 (7) For benefit years established before the conversion date 27 prescribed in section 75, and notwithstanding subdivisions (1), 00019'01 19 1 (2), and (3), the denial of benefits does not prevent an 2 individual from completing requalifying weeks in accordance with 3 section 29(3) nor does the denial prevent an individual from 4 receiving benefits based on service with an employer other than 5 an educational institution for any week of unemployment occurring 6 between academic years or terms, whether or not successive, or 7 during an established and customary vacation period or holiday 8 recess, even though the employer is not the most recent charge- 9 able employer in the individual's base period. However, in that 10 case section 20(b) applies to the sequence of benefit charging, 11 except for the employment with the educational institution, and 12 section 50(b) applies to the calculation of credit weeks. When a 13 denial of benefits under subdivision (1) no longer applies, bene- 14 fits shall be charged in accordance with the normal sequence of 15 charging as provided in section 20(b). 16 (8) For benefit years beginning after the conversion date 17 prescribed in section 75, and notwithstanding subdivisions (1), 18 (2), and (3), the denial of benefits shall not prevent an indi- 19 vidual from completing requalifying weeks in accordance with 20 section 29(3) nor shall the denial prevent an individual from 21 receiving benefits based on service with another base period 22 employer other than an educational institution for any week of 23 unemployment occurring between academic years or terms, whether 24 or not successive, or during an established and customary vaca- 25 tion period or holiday recess. However, when benefits are paid 26 based on service with 1 or more base period employers other than 27 an educational institution, the individual's weekly benefit rate 00019'01 20 1 shall be calculated in accordance with subsection (b)(1) but 2 during the denial period the individual's weekly benefit payment 3 shall be reduced by the portion of the payment attributable to 4 base period wages paid by an educational institution and the 5 account or experience account of the educational institution 6 shall not be charged for benefits payable to the individual. 7 When a denial of benefits under subdivision (1) is no longer 8 applicable, benefits shall be paid and charged on the basis of 9 base period wages with each of the base period employers includ- 10 ing the educational institution. 11 (9) For the purposes of this subsection, "academic year" 12 means that period, as defined by the educational institution, 13 when classes are in session for that length of time required for 14 students to receive sufficient instruction or earn sufficient 15 credit to complete academic requirements for a particular grade 16 level or to complete instruction in a noncredit course. 17 (10) Benefits shall be denied, as provided in subdivisions 18 (1), (2), and (3), for any week of unemployment beginning on and 19 after April 1, 1984, to an individual who performed those serv- 20 ices in an educational institution while in the employ of an edu- 21 cational service agency. For the purpose of this subdivision, 22 "educational service agency" means a governmental agency or gov- 23 ernmental entity that is established and operated exclusively for 24 the purpose of providing the services to 1 or more educational 25 institutions. 26 (j) For weeks of unemployment beginning after December 31, 27 1977, benefits shall not be paid to an individual on the basis of 00019'01 21 1 any base period services, substantially all of which consist of 2 participating in sports or athletic events or training or prepar- 3 ing to so participate, for a week that commences during the 4 period between 2 successive sport seasons or similar periods if 5 the individual performed the services in the first of the seasons 6 or similar periods and there is a reasonable assurance that the 7 individual will perform the services in the later of the seasons 8 or similar periods. 9 (k)(1) For weeks of unemployment beginning after 10 December 31, 1977, benefits shall not be payable on the basis of 11 services performed by an alien unless the alien is an individual 12 who was lawfully admitted for permanent residence at the time the 13 services were performed, was lawfully present for the purpose of 14 performing the services, or was permanently residing in the 15 United States under color of law at the time the services were 16 performed, including an alien who was lawfully present in the 17 United States under A FORMER section 203(a)(7) or 18 section 212(d)(5) of the immigration and nationality act, 8 19 U.S.C. 1153 and 1182. 20 (2) Any data or information required of individuals applying 21 for benefits to determine whether benefits are payable because of 22 their alien status are uniformly required from all applicants for 23 benefits. 24 (3) Where an individual whose application for benefits would 25 otherwise be approved, a determination that benefits to that 26 individual are not payable because of the individual's alien 00019'01 22 1 status shall not be made except upon a preponderance of the 2 evidence. 3 (m)(1) An individual filing a new claim for unemployment 4 compensation under this act after September 30, 1982, at the time 5 of filing the claim, shall disclose whether the individual owes 6 child support obligations as defined in this subsection. If an 7 individual discloses that he or she owes child support obliga- 8 tions and is determined to be eligible for unemployment compensa- 9 tion, the commission shall notify the state or local child sup- 10 port enforcement agency enforcing the obligation that the indi- 11 vidual has been determined to be eligible for unemployment 12 compensation. 13 (2) Notwithstanding section 30, the commission shall deduct 14 and withhold from any unemployment compensation payable to an 15 individual who owes child support obligations by using whichever 16 of the following methods results in the greatest amount: 17 (a) The amount, if any, specified by the individual to be 18 deducted and withheld under this subdivision. 19 (b) The amount, if any, determined pursuant to an agreement 20 submitted to the commission under section 454(19)(B)(i) of part D 21 of title IV of the social security act,chapter 531, 4922Stat. 620,42 U.S.C. 654, by the state or local child support 23 enforcement agency. 24 (c) Any amount otherwise required to be so deducted and 25 withheld from unemployment compensation pursuant to legal pro- 26 cess, as that term is defined in FORMER section 462(e) of part D 00019'01 23 1 of title IV of the social security act,chapter 531, 492Stat. 620, 42 U.S.C. 662,properly served upon the commission. 3 (3) The amount of unemployment compensation subject to 4 deduction under subdivision (2) is that portion that remains pay- 5 able to the individual after application of the recoupment provi- 6 sions of section 62(a) and the reduction provisions of 7 subsections (c) and (f). 8 (4) Any amount deducted and withheld under subdivision (2) 9 shall be paid by the commission to the appropriate state or local 10 child support enforcement agency. 11 (5) Any amount deducted and withheld under subdivision (2) 12 shall be treated for all purposes as if it were paid to the indi- 13 vidual as unemployment compensation and paid by the individual to 14 the state or local child support enforcement agency in satisfac- 15 tion of the individual's child support obligations. 16 (6) This subsection applies only if the state or local child 17 support enforcement agency agrees in writing to reimburse and 18 does reimburse the commission for the administrative costs 19 incurred by the commission under this subsection that are attrib- 20 utable to child support obligations being enforced by the state 21 or local child support enforcement agency. The administrative 22 costs incurred shall be determined by the commission. The com- 23 mission, in its discretion, may require payment of administrative 24 costs in advance. 25 (7) As used in this subsection: 26 (a) "Unemployment compensation", for purposes of 27 subdivisions (1) through (5), means any compensation payable 00019'01 24 1 under this act, including amounts payable by the commission 2 pursuant to an agreement under any federal law providing for com- 3 pensation, assistance, or allowances with respect to 4 unemployment. 5 (b) "Child support obligations" includes only obligations 6 that are being enforced pursuant to a plan described in FORMER 7 section 454 of part D of title IV of the social security act, 8chapter 531, 49 Stat. 620, 42 U.S.C. 654,that has been 9 approved by the secretary of health and human services under 10 part D of title IV of the social security act, chapter 531, 49 11 Stat. 620, 42 U.S.C. 651 to669653a, 654a TO 655, 656 TO 660, 12 AND 663 TO 669b. 13 (c) "State or local child support enforcement agency" means 14 any agency of this state or a political subdivision of this state 15 operating pursuant to a plan described in subparagraph (b). 16 (n) Subsection (i)(2) applies to services performed by 17 school bus drivers employed by a private contributing employer 18 holding a contractual relationship with an educational institu- 19 tion, but only if at least 75% of the individual's base period 20 wages with that employer are attributable to services performed 21 as a school bus driver. 22 (o)(1) For weeks of unemployment beginning after July 1, 23 1996, unemployment benefits based on services by a seasonal 24 worker performed in seasonal employment shall be payable only for 25 weeks of unemployment that occur during the normal seasonal work 26 period. Benefits shall not be paid based on services performed 27 in seasonal employment for any week of unemployment beginning 00019'01 25 1 after the effective date of this subdivision that begins during 2 the period between 2 successive normal seasonal work periods to 3 any individual if that individual performs the service in the 4 first of the normal seasonal work periods and if there is a rea- 5 sonable assurance that the individual will perform the service 6 for a seasonal employer in the second of the normal seasonal work 7 periods. If benefits are denied to an individual for any week 8 solely as a result of this subsection and the individual is not 9 offered an opportunity to perform in the second normal seasonal 10 work period for which reasonable assurance of employment had been 11 given, the individual is entitled to a retroactive payment of 12 benefits under this subsection for each week that the individual 13 previously filed a timely claim for benefits. An individual may 14 apply for any retroactive benefits under this subsection in 15 accordance with R 421.210 of the Michigan administrative code. 16 (2) Not less than 20 days before the estimated beginning 17 date of a normal seasonal work period, an employer may apply to 18 the commission in writing for designation as a seasonal 19 employer. At the time of application, the employer shall con- 20 spicuously display a copy of the application on the employer's 21 premises. Within 90 days after receipt of the application, the 22 commission shall determine if the employer is a seasonal 23 employer. A determination or redetermination of the commission 24 concerning the status of an employer as a seasonal employer, or a 25 decision of a referee or the board of review, or of the courts of 26 this state concerning the status of an employer as a seasonal 27 employer, which has become final, together with the record 00019'01 26 1 thereof, may be introduced in any proceeding involving a claim 2 for benefits, and the facts found and decision issued in the 3 determination, redetermination, or decision shall be conclusive 4 unless substantial evidence to the contrary is introduced by or 5 on behalf of the claimant. 6 (3) If the employer is determined to be a seasonal employer, 7 the employer shall conspicuously display on its premises a notice 8 of the determination and the beginning and ending dates of the 9 employer's normal seasonal work periods. The notice shall be 10 furnished by the commission. The notice shall additionally spec- 11 ify that an employee must timely apply for unemployment benefits 12 at the end of a first seasonal work period to preserve his or her 13 right to receive retroactive unemployment benefits in the event 14 that he or she is not reemployed by the seasonal employer in the 15 second of the normal seasonal work periods. 16 (4) The commission may issue a determination terminating an 17 employer's status as a seasonal employer on the commission's own 18 motion for good cause, or upon the written request of the 19 employer. A termination determination under this subdivision 20 terminates an employer's status as a seasonal employer, and shall 21 become effective on the beginning date of the normal seasonal 22 work period that would have immediately followed the date the 23 commission issues the determination. A determination under this 24 subdivision is subject to review in the same manner and to the 25 same extent as any other determination under this act. 26 (5) An employer whose status as a seasonal employer is 27 terminated under subdivision (4) may not reapply for a seasonal 00019'01 27 1 employer status determination until after a regularly recurring 2 normal seasonal work period has begun and ended. 3 (6) If a seasonal employer informs an employee who received 4 assurance of being rehired that, despite the assurance, the 5 employee will not be rehired at the beginning of the employer's 6 next normal seasonal work period, this subsection shall not pre- 7 vent the employee from receiving unemployment benefits in the 8 same manner and to the same extent he or she would receive bene- 9 fits under this act from an employer who has not been determined 10 to be a seasonal employer. 11 (7) A successor of a seasonal employer is considered to be a 12 seasonal employer unless the successor provides the commission, 13 within 120 days after the transfer, with a written request for 14 termination of its status as a seasonal employer in accordance 15 with subdivision (4). 16 (8) At the time an employee is hired by a seasonal employer, 17 the employer shall notify the employee in writing whether the 18 employee will be a seasonal worker. The employer shall provide 19 the worker with written notice of any subsequent change in the 20 employee's status as a seasonal worker. If an employee of a sea- 21 sonal employer is denied benefits because that employee is a sea- 22 sonal worker, the employee may contest that designation in 23 accordance with section 32a. 24 (9) As used in this subsection: 25 (a) "Construction industry" means the work activity desig- 26 nated inmajor groups 15, 16, and 17 of the standard industrial27classification manual, United States office of management and00019'01 28 1budget, 1987SECTOR GROUP 23-CONSTRUCTION, OF THE NORTH AMERICAN 2 CLASSIFICATION SYSTEM-UNITED STATES OFFICE OF MANAGEMENT AND 3 BUDGET, 1997 edition. 4 (b) "Normal seasonal work period" means that period or those 5 periods of time determined pursuant to rules promulgated by the 6 commission during which an individual is employed in seasonal 7 employment. 8 (c) "Seasonal employment" means the employment of 1 or more 9 individuals primarily hired to perform services in an industry, 10 other than the construction industry, that does either of the 11 following: 12 (1) Customarily operates during regularly recurring periods 13 of 26 weeks or less in any 52-consecutive-week period. 14 (2) Customarily employs at least 50% of its employees for 15 regularly recurring periods of 26 weeks or less within a period 16 of 52 consecutive weeks. 17 (d) "Seasonal employer" means an employer, other than an 18 employer in the construction industry, who applies to the commis- 19 sion for designation as a seasonal employer and who the commis- 20 sion determines to be an employer whose operations and business 21 are substantially engaged in seasonal employment. A SEASONAL 22 EMPLOYER SHALL INCLUDE, BUT IS NOT LIMITED TO, A HOTEL OR MOTEL 23 THE OPERATIONS AND BUSINESS OF WHICH ARE SUBSTANTIALLY ENGAGED IN 24 SEASONAL EMPLOYMENT. AS USED IN THIS SUBDIVISION, "HOTEL" OR 25 "MOTEL" MEANS THAT TERM AS DEFINED IN SECTION 3A OF THE USE TAX 26 ACT, 1937 PA 94, MCL 205.93A. 00019'01 29 1 (e) "Seasonal worker" means a worker who has been paid wages 2 by a seasonal employer for work performed only during the normal 3 seasonal work period. 4 (10) If this subsection is found by the United States 5 department of labor to be contrary to the federal unemployment 6 tax act, chapter 23 of the internal revenue code of 1986, 26 7 U.S.C. 3301 to 3311, or the social security act, chapter 531, 49 8 Stat. 620, and if conformity with the federal law is required as 9 a condition for full tax credit against the tax imposed under the 10 federal unemployment tax act or as a condition for receipt by the 11 commission of federal administrative grant funds under the social 12 security act, this subsection shall be invalid. 13 (p) Benefits shall not be paid to an individual based upon 14 his or her services as a school crossing guard for any week of 15 unemployment that begins between 2 successive academic years or 16 terms, if that individual performs the services of a school 17 crossing guard in the first of the academic years or terms and 18 has a reasonable assurance that he or she will perform those 19 services in the second of the academic years or terms. 00019'01 Final page. 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