HB-4415, As Passed House, March 10, 2005
February 24, 2005, Introduced by Reps. Robertson, Gosselin, Stahl, Taub and Gonzales 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 26 (MCL 421.26), as amended by 1984 PA 172.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 26. (a) There is established as a special fund, separate
and
apart from all public moneys money
or funds of this state, an
unemployment compensation fund, herein referred to as the fund,
which shall be administered by the commission exclusively for the
purposes
of this act. Such The
fund shall consist of (1) all
contributions and payments in lieu of contributions collected under
the provisions of this act as well as reimbursement payments by the
federal government for its portion of sharable extended benefits;
(2) interest earned upon any moneys in the fund; (3) any property
or
securities acquired through the use of
moneys money belonging
to the fund; (4) all earnings of such property or securities; (5)
amounts transferred from the contingent fund pursuant to section
10; (6) all money collected, including fines, civil penalties, and
interest,
under section 22b; and (6) (7)
any other moneys money
received by the commission for unemployment compensation, except
interest,
penalties, and damages collected under
the other
provisions
of this act. All moneys money
in the fund shall be
mingled and undivided.
(b) The commission shall designate a treasurer and custodian
of
the fund who shall administer such the
fund in accordance with
the directions of the commission and shall issue his or her
vouchers
upon it in accordance with such the
regulations as the
commission shall
prescribe prescribes. The treasurer shall
maintain within the fund 3 separate accounts: (1) a clearing
account, (2) an unemployment trust fund account, and (3) a benefit
account.
All moneys money
payable to the fund, upon receipt
thereof
by the commission, shall be forwarded to the
treasurer who
shall
immediately deposit them it
in the clearing account.
Refunds
payable pursuant to section 16 of this act may be paid
from the clearing account upon vouchers issued by the treasurer
under
the direction of the commission. After clearance thereof of
the
vouchers, all other moneys
money in the clearing account,
except amounts needed for refunds and judgments, shall be
immediately deposited with the secretary of the treasury of the
United States of America to the credit of the account of this state
in the unemployment trust fund, established and maintained pursuant
to
section 904 of the social security act,
as amended 42 USC
1104. The benefit account shall consist of all moneys
money
requisitioned from this state's account in the unemployment trust
fund.
Except as herein otherwise provided in this act, moneys
money in the clearing and benefit accounts may be deposited by the
treasurer, under the direction of the commission, in any depository
designated by the commission.
(c)(1) Except as provided in paragraph (2) of this subsection,
money shall be requisitioned from this state's account in the
unemployment trust fund solely for the payment of benefits and in
accordance with regulations prescribed by the commission. The
commission shall from time to time requisition from the
unemployment trust fund such amounts, not exceeding the amounts
standing
to its account therein in that fund, as it deems
necessary for the payment of benefits for a reasonable future
period.
Upon receipt, thereof, the treasurer shall deposit such
moneys
the requisitioned money in the benefit account and shall
issue
his or her vouchers for the payment of benefits solely from
such
the benefit account. All vouchers issued by the
treasurer for
the payment of benefits and refunds shall bear the signature of the
treasurer and the counter-signature of a member of the commission
or
its duly authorized agent for that purpose. Any balance of
moneys
money requisitioned from the unemployment trust fund which
remains unclaimed or unpaid in the benefit account after the
expiration
of the period for which such the
sums were
requisitioned shall either be deducted from estimates for, and may
be utilized for the payment of, benefits during succeeding periods,
or, in the discretion of the commission, shall be redeposited with
the secretary of the treasury of the United States of America, to
the credit of this state's account in the unemployment trust fund,
as
provided in subsection (b). of this section.
(2) The commission may requisition from this state's account
in the unemployment trust fund such amounts, or portions thereof,
as have been specifically appropriated by the legislature for the
administration of this act in accordance with the provisions of
section
903(c)(2) of the federal social security act, as amended
42
USC 1103(c)(2). Upon receipt, of
such moneys, the treasurer
shall
deposit them that
money in the administration fund, but
such
moneys it shall remain a part of the unemployment
compensation fund until expended.
(d) The provisions of subsections (a), (b), and (c), to the
extent that they relate to the unemployment trust fund, shall be
operative
only so long as such while the unemployment
trust fund
continues
to exist and so long as until the secretary of the
treasury of the United States of America continues to maintain for
this
state a separate account of all funds deposited therein in
it by this state for benefit purposes, together with this state's
proportionate
share of the earnings of such the
unemployment
trust fund, from which no other state is permitted to make
withdrawals.
If and when such the unemployment trust fund
ceases
to
exist, or such the
separate account is no longer
maintained,
all moneys
money, properties, or securities therein, belonging to
the unemployment compensation fund of this state, shall be
transferred to the treasurer of the unemployment compensation fund,
who
shall hold, invest, transfer, sell, deposit, and release such
moneys the money, properties, or securities in a manner approved by
the commission, in bonds or other interest bearing obligations of
the
United States of America or of the this
state. of Michigan.
Such
investment The investments shall be so made that all the
assets
of the fund shall be are readily convertible
into cash
when needed for the payment of benefits. The treasurer shall
dispose of securities or other properties belonging to the
unemployment compensation fund only under the direction of the
commission.
(e) The unemployment compensation fund shall be audited by the
auditor
general at such the
times as shall be requested
by the
state administrative board.
(f) The commission may designate an assistant treasurer who,
in the absence of the treasurer and custodian as designated by the
commission
under the authority conferred upon it under section
26(b)
subsection (b), shall be authorized to may perform such
the
duties as are conferred
upon the treasurer and custodian
under the
provisions of this act.
(g)
The commission is hereby authorized to may enter
into
such
agreement as may be agreements
that are necessary to secure
any advance or grant of funds by the secretary of the treasury of
the United States in accordance with the authority extended under
section
1201 of the social security act, as amended 42 USC 1321,
or
under any other act of congress extending such that authority.
Any amount transferred to the unemployment trust fund by the
secretary of the treasury of the United States under the terms of
any agreement entered into in accordance with the authority
extended in this subsection shall be repaid to the secretary of the
treasury of the United States for the unemployment trust fund.
Whenever all interest bearing advances from the federal
government have been repaid, if employers will be able to avoid,
under the provisions of section 3302(g) of the federal unemployment
tax
act, 26 U.S.C. USC
3302(g), direct payment of the additional
federal unemployment tax imposed under section 3302(c)(2) of the
federal unemployment tax act, 26 USC 3302(c)(2), funds sufficient
to
qualify for such avoidance shall be transferred from the
account
of the this
state of Michigan in
the federal
unemployment
trust fund to the federal unemployment account in
such
that trust fund, unless precluded by federal law.
Any interest required to be paid on advances under title XII
of
the social security act, 42 U.S.C. USC
1321 to 1324, shall be
paid in a timely manner and shall not be paid, directly or
indirectly by an equivalent reduction in contributions or payments
in
lieu of contributions, from amounts in
the state of Michigan
this state's account in the federal unemployment trust fund.
Enacting section 1. This amendatory act takes effect July 1,
2005.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 93rd Legislature are
enacted into law:
[(a) Senate Bill No. 171.
(b) Senate Bill No. 174.
(c) House Bill No. 4414.
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