SB-0553, As Passed Senate, June 29, 2005

SUBSTITUTE FOR

SENATE BILL NO. 553

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

"Michigan employment security act,"

by amending section 11 (MCL 421.11), as amended by 1995 PA 25.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 11. (a) In the administration of this act, the commission

shall cooperate with the appropriate agency of the United States

under the social security act. The commission shall make reports,

in a form and containing information as the appropriate agency of

the United States may  from time to time require, and shall comply

with  such  the provisions  as  that the appropriate agency of the

United States  may from time to time prescribe  prescribes to

assure the correctness and verification of the reports. The

commission, subject to this act, shall comply with the regulations

prescribed by the appropriate agency of the United States relating

to the receipt or expenditure of  such  the sums  as may be  that

are allotted and paid to this state for the purpose of assisting in

the administration of this act. As used in this section, "social

security act" means the social security act, chapter 531, 49 Stat.

620.

     (b)(1) Information obtained from any employing unit or

individual pursuant to the administration of this act, and

determinations as to the benefit rights of any individual shall be

held confidential and shall not be disclosed or open to public

inspection other than to public employees in the performance of

their official duties pursuant to  under this act in any manner

revealing the individual's or the employing unit's identity.

However, all of the following apply:

     (i) Information in the commission's possession that  may  might

affect a claim for worker's disability compensation under the

worker's disability compensation act of 1969,  Act No. 317 of the

Public Acts of 1969, being sections 418.101 to 418.941 of the

Michigan Compiled Laws 1969 PA 317, MCL 418.101 to 418.941, shall

be available to interested parties, regardless of whether the

commission is a party to an action or proceeding arising under  Act

No. 317 of the Public Acts of 1969  that act.

     (ii) Any information in the commission's possession that may

affect a claim for benefits or a charge to an employer's  rating

experience account shall be available to interested parties.

     (iii) Except as provided in this act,  such  the information and

determinations shall not be used in any action or proceeding before

any court or administrative tribunal unless the commission is a

party to or a complainant in the action or proceeding, or unless

used for the prosecution of fraud, civil proceeding, or other legal

proceeding  pursuant to  in the programs indicated in subdivision

(2).

     (iv) Any report or statement, written or verbal, made by any

person to the commission, any member of the commission, or to any

person engaged in administering this  law shall be  act is a

privileged communication, and a person, firm, or corporation shall

not be held liable for slander or libel on account of a report or

statement.  Such  The records and reports in the custody of the

commission shall be available for examination by the employer or

employee affected.

     (v) Subject to restrictions  as  that the commission  may

prescribes by rule,  prescribe, information in the commission's

possession may be made available to any agency of this or any other

state, or any federal agency, charged with the administration of an

unemployment compensation law or the maintenance of a system of

public employment offices; the bureau of internal revenue of the

United States department of the treasury; the bureau of the census

of the economics and statistics administration of the United States

department of commerce; or the social security administration of

the United States department of health and human services.

     (vi) Information obtained in connection with the administration

of the employment service may be made available to persons or

agencies for purposes appropriate to the operation of a public

employment service. Subject to  such restrictions  as  that the

commission  may  prescribes by rule,  prescribe, the commission

may also make  such  that information available to agencies of

other states  which  that are responsible for the administration of

public assistance to unemployed workers, and to the departments of

this state. Information so released shall be used only for purposes

not inconsistent with the purposes of this act.

     (vii) The commission may make available to the department of

treasury information collected for the income eligibility and

verification system begun on October 1, 1988 for the purpose of

detection of potential tax fraud in other areas.

(vii)  (viii) Upon request, the commission shall furnish to any

agency of the United States charged with the administration of

public works or assistance through public employment, and may

furnish to any state agency similarly charged, the name, address,

ordinary occupation, and employment status of each recipient of

benefits and the recipient's rights to further benefits under this

act.

(viii)  (ix) Subject to restrictions  as the commission  may

prescribe  prescribes, by rule or otherwise, the commission may

also make  such information that it obtains available to colleges,

universities, and public agencies of this state for use in

connection with research projects of a public service nature. A

person associated with  such  those institutions or agencies shall

not disclose the information in any manner  which  that would

reveal the identity of any individual or employing unit from or

concerning whom the information was obtained by the commission.

(ix)  (x) The commission may request the comptroller of the

currency of the United States to cause an examination of the

correctness of any return or report of any national banking

association rendered  pursuant to  under this act, and may, in

connection with the request, transmit the report or return to the

comptroller of the currency of the United States as provided in

section 3305(c) of the internal revenue code, 26 USC 3305.

     (2) The commission shall disclose to qualified requesting

agencies, upon request, with respect to an identified individual,

information in its records pertaining to the individual's name;

social security number; gross wages paid during each quarter; the

name, address, and federal and state employer identification number

of the individual's employer; any other wage information; whether

an individual is receiving, has received, or has applied for

unemployment benefits; the amount of unemployment benefits the

individual is receiving or is entitled to receive; the individual's

current or most recent home address; whether the individual has

refused an offer of work and if so a description of the job offered

including the terms, conditions, and rate of pay; and any other

information which the qualified requesting agency considers useful

in verifying eligibility for, and the amount of, benefits. For

purposes of this subdivision, "qualified requesting agency" means

any state or local child support enforcement agency responsible for

enforcing child support obligations under a plan approved under

part d of  Title  title IV of the social security act, 42  U.S.C.

USC 651 to  669  669b; the United States department of health and

human services for purposes of establishing or verifying

eligibility or benefit amounts under  Titles  titles II and XVI of

the social security act, 42  U.S.C.  USC 401 to  433  434 and 42

U.S.C.  USC 1381 to  1383d  1383f; the United States department of

agriculture for the purposes of determining eligibility for, and

amount of, benefits under the food stamp program established under

the food stamp act of 1977, 7  U.S.C.  USC 2011 to  2032  2036; and

any other state or local agency of this or any other state

responsible for administering the following programs:

     (i) The aid to families with dependent children program under

part a of  Title  title IV of the social security act, 42  U.S.C.

USC 601 to  617  619.

     (ii) The medicaid program under  Title  title XIX of the social

security act, 42  U.S.C.  USC 1396 to  1396u  1396v.

     (iii) The unemployment compensation program under section 3304

of the internal revenue code of 1954, 26  U.S.C.  USC 3304.

     (iv) The food stamp program under the food stamp act of 1977, 7

U.S.C.  USC 2011 to  2032  2036.

     (v) Any state program under a plan approved under  Title

title I, X, XIV, or XVI of the social security act, 42  U.S.C.  USC

301 to 306, 42  U.S.C.  USC 1201 to 1206, 42  U.S.C.  USC 1351 to

1355, and 42  U.S.C.  USC 1381 to  1383d  1383f.

     (vi) Any program administered under the social welfare act,

Act No. 280 of the Public Acts of 1939, being sections 400.1 to

400.119b of the Michigan Compiled Laws  1939 PA 280, MCL 400.1 to

400.119b.

     The information shall be disclosed only if the qualified

requesting agency has executed an agreement with the commission to

obtain  such  the information and if the information is requested

for the purpose of determining the eligibility of applicants for

benefits, or the type and amount of benefits for which applicants

are eligible, under any of the programs listed above or under

Titles  title II and XVI of the social security act; for

establishing and collecting child support obligations from, and

locating individuals owing such obligations which are being

enforced pursuant to a plan described in section 454 of the social

security act, 42  U.S.C.  USC 654; or for investigating or

prosecuting alleged fraud under any of these programs.

     The commission shall cooperate with the department of  social

human services in establishing the computer data matching system

authorized in section 83 of  Act No. 280 of the Public Acts of

1939, being section 400.83 of the Michigan Compiled Laws  the

social welfare act, 1939 PA 280, MCL 400.83, to transmit the

information requested on at least a quarterly basis. The

information shall not be released unless the qualified requesting

agency agrees to reimburse the commission for the costs incurred in

furnishing the information.

     In addition to the requirements of this section, except as

later provided in this subdivision, all other requirements with

respect to confidentiality of information obtained in the

administration of this act shall apply to the use of the

information by the officers and employees of the qualified

requesting agencies, and the sanctions imposed under this act for

improper disclosure of the information shall be applicable to  such

those officers and employees. A qualified requesting agency may

redisclose information only to  the following individuals or

agencies: (1) the individual who is the subject of the

information,  (2) an attorney or other duly authorized agent

representing the individual if the information is needed in

connection with a claim for benefits against the requesting agency,

or  (3)  any criminal or civil prosecuting  authorities  authority

acting for or on behalf of the requesting agency.

     The commission is authorized to enter into an agreement with

any qualified requesting agency for the purposes described in this

subdivision.  Such  The agreement or agreements must comply with

all federal laws and regulations applicable to such agreements.

     (3) The commission shall enable the United States department

of health and human services to obtain prompt access to any wage

and unemployment benefit claims information, including any

information that might be useful in locating an absent parent or an

absent parent's employer, for purposes of section 453 of the social

security act, 42  U.S.C.  USC 653, in carrying out the child

support enforcement program under title IV of that act. Access to

the information shall not be provided unless the requesting agency

agrees to reimburse the commission for the costs incurred in

furnishing the information.

     (4) Upon request accompanied by presentation of a consent to

the release of information signed by an individual, the commission

shall disclose to the United States department of housing and urban

development and any state or local public housing agency

responsible for verifying an applicant's or participant's

eligibility for, or level of benefits in, any housing assistance

program administered by the United States department of housing and

urban development, the name, address, wage information, whether an

individual is receiving, has received, or has made application for

unemployment benefits, and the amount of unemployment benefits the

individual is receiving or is entitled to receive under this act.

This information shall be used only to determine an individual's

eligibility for benefits or the amount of benefits to which an

individual is entitled under a housing assistance program of the

United States department of housing and urban development. The

information shall not be released unless the requesting agency

agrees to reimburse the commission for the costs incurred in

furnishing the information. For purposes of this subsection,

"public housing agency" means an agency described in section

3(b)(6) of the United States housing act of 1937, 42  U.S.C.  USC

1437a.

     (5) The commission may make available to the department of

treasury information collected for the income and eligibility

verification system begun on October 1, 1988 for the purpose of

detection of potential tax fraud in other areas.

     (c) The commission is authorized to enter into agreements with

the appropriate agencies of other states or the federal government

whereby potential rights to benefits accumulated under the

unemployment compensation laws of other states or  such a law of

the federal government, or both, may constitute the basis for the

payment of benefits through a single appropriate agency under plans

which  that the commission finds will be fair and reasonable  as

to all affected interests and will not result in substantial loss

to the unemployment compensation fund.

     (d)(1) The commission is authorized to enter into reciprocal

agreements with the appropriate agencies of other states or of the

federal government adjusting the collection and payment of

contributions by employers with respect to employment not localized

within this state.

     (2) The commission is authorized to enter into reciprocal

agreements with agencies of other states administering unemployment

compensation, whereby contributions paid by an employer to any

other state may be received by the other state as an agent acting

for and on behalf of this state to the same extent as if the

contributions had been paid directly to this state if the payment

is remitted to this state. Contributions so received by another

state shall be deemed contributions, required and paid under this

act as of the date the contributions were received by the other

state. The commission may collect contributions in a like manner

for agencies of other states administering unemployment

compensation and remit the contributions to the agencies under the

terms of the reciprocal agreements.

     (e) The commission may make the state's records relating to

the administration of this act available and may furnish to the

railroad retirement board or any other state or federal agency

administering an unemployment compensation law, at the expense of

that board, state, or agency, copies of the records as the railroad

retirement board deems necessary for its purpose.

     (f) The commission may cooperate with or enter into agreements

with any agency of another state or of the United States charged

with the administration of any unemployment insurance or public

employment service law.

     The commission  is authorized to  may make investigations,

secure and transmit information, make available services and

facilities, and exercise other powers provided in this act with

respect to the administration of this act as it deems necessary or

appropriate to facilitate the administration of any unemployment

compensation or public employment service law, and  in like manner,

to  may accept and utilize information, services, and facilities

made available to this state by the agency charged with the

administration of any other unemployment compensation or public

employment service law.

     On request of an agency  which  that administers an employment

security law of another state or foreign government and  which

that has found, in accordance with that law, that a claimant is

liable to repay benefits received under that law, the commission

may collect the amount of the benefits from the claimant to be

refunded to the agency.

     In any case in which under this subsection a claimant is

liable to repay any amount to the agency of another state or

foreign government, the amount may be collected by civil action in

the name of the commission acting as agent for the agency. Court

costs shall be paid or guaranteed by the agency of that state.

     To the extent permissible under the laws and constitution of

the United States, the commission is authorized to enter into or

cooperate in arrangements whereby facilities and services provided

under this act and facilities and services provided under the

unemployment compensation law of the Dominion of Canada may be

utilized for the taking of claims and the payment of benefits under

the unemployment compensation law of this state or under a similar

law of the Dominion of Canada.

     Any employer who is not a resident of this state and who

exercises the privilege of having 1 or more individuals perform

service for him or her within this state, and any resident employer

who exercises that privilege and thereafter leaves this state,

shall be deemed thereby  is considered to  appoint  have appointed

the secretary of state as his or her agent and attorney for the

acceptance of process in any civil action under this act. In

instituting  such an  the action,  against any employer, the

commission shall cause  such process or notice to be filed with

the secretary of state, and  such  the service shall be sufficient

and shall be of the same force and validity as if served upon the

nonresident or absent employer personally within this state. The

commission immediately shall send notice of the service of process

or notice, together with a copy thereof, by registered mail, return

receipt requested, to the employer at his or her last known

address. The return receipt, the commission's affidavit of

compliance with this section, and a copy of the notice of service

shall be attached to the original of the process filed in the court

in which the civil action is pending.

     The courts of this state shall recognize and enforce

liabilities, as provided in this act, for unemployment compensation

contributions, penalties, and interest imposed by other states

which extend a like comity to this state.

     The attorney general  is empowered to  may commence action in

the appropriate court of any other state or any other jurisdiction

of the United States by and in the name of the commission to

collect unemployment compensation contributions, penalties, and

interest finally determined, redetermined, or decided under this

act to be legally due this state. The officials of other states

which extend a like comity to this state  are empowered to  may sue

in the courts of this state for the collection of unemployment

compensation contributions, penalties, and interest, the liability

for which has been similarly established under the laws of the

other state or jurisdiction. A certificate by the secretary of

another state under the great seal of that state attesting the

authority of the official or officials to collect unemployment

compensation contributions, penalties, and interest  shall be  is

conclusive evidence of that authority.

     The attorney general  is authorized to  may commence action in

this state as agent for or on behalf of any other state to enforce

judgments and established liabilities for unemployment compensation

taxes or contributions, penalties, and interest due the other state

if the other state extends a like comity to this state.

     (g) The commission  is also authorized to  may also enter into

reciprocal agreements with the appropriate and authorized agencies

of other states or of the federal government whereby remuneration

and services,  upon the basis of which an individual may become

entitled  that determine entitlement to benefits under the

unemployment compensation law of another state or of the federal

government,  shall be deemed to be  are considered wages and

employment for the purposes of sections 27 and 46, if the other

state agency or agency of the federal government has agreed to

reimburse the fund for that portion of benefits paid under this act

upon the basis of the remuneration and services as the commission

finds will be fair and reasonable as to all affected interests.  ,

and  A reciprocal agreement may provide that wages and employment,

on the basis of which an individual may become entitled  that

determine entitlement to benefits under this act,  shall be deemed

to be  are considered wages or services on the basis of which

unemployment compensation under the law of another state or of the

federal government is payable; , and whereby  may provide that

services performed by an individual for a single employing unit for

which services are customarily performed by the individual in more

than 1 state  shall be deemed to be  are considered services

performed entirely within any 1 of the states in which any part of

the individual's service is performed, in which the individual has

his or her residence, or in which the employing unit maintains a

place of business, if there is  ,  in effect as to  such  those

services, an election approved by the agency charged with the

administration of the state's unemployment compensation law,

pursuant to which all the services performed by the individual for

the employing unit are  deemed  considered to be performed entirely

within the state;  , and  whereby  may provide that the commission

will reimburse other state or federal agencies charged with the

administration of unemployment compensation laws with such

reasonable portion of benefits, paid under the law of any other

state or of the federal government upon the basis of employment and

wages, as the commission finds will be fair and reasonable as to

all affected interests. Reimbursements  so payable  shall be

deemed to be  under this subsection are considered benefits for the

purpose of limiting duration of benefits and for the purposes of

sections  20a  20(a) and 26, and the payments shall be charged to

the contributing employer's  rating  experience account for the

purposes of sections 17, 18, 19, and 20, or the reimbursing

employer's account under section 13c,  or 13g, 13i, or 13l, as

applicable. Benefits paid under a combined wage plan shall be

allocated and charged to each employer involved in the quarter in

which the paying state requires reimbursement. Benefits charged to

this state shall be allocated to each employer of this state who

has employed the claimant during the base period of the paying

state in the same ratio that the wages earned by the claimant

during the base period of the paying state in the employ of the

employer bears to the total amount of wages earned by the claimant

in the base period of the paying state in the employ of all

employers of the state. The commission is authorized to make to

other state or federal agencies and receive from other state or

federal agencies reimbursements from or to the fund, in accordance

with arrangements made pursuant to this section.

     (h) The commission  is authorized and directed to  may enter

into any agreement necessary  in order that it may  to cooperate

with any agency of the United States charged with the

administration of any program for the payment of primary or

supplemental benefits to individuals recently discharged from the

military services of the United States, and to assist in the

establishing of eligibility and in the payments of benefits

thereunder under those programs, and for those purposes may accept

and administer funds made available by the federal government and

may accept and exercise any delegated function  as may be provided

thereunder  under those programs. The commission shall not  have

power to enter into any agreement providing for, or exercise any

function connected with, the disbursement of the state's

unemployment trust fund for purposes not authorized by this act.

     (i) The commission may enter into agreements with the

appropriate agency of the United States  whereby  under which, in

accordance with the laws of the United States, the commission, as

agent of the United States  ,  or from funds provided by the United

States,  shall provide  provides for the payment of unemployment

compensation or unemployment allowances of any kind, including the

payment of any benefits and allowances that are made available for

manpower development, training, retraining, readjustment, and

relocation. The commission may receive and disburse funds from the

United States or any appropriate agency of the United States in

accordance with any such agreements.

     If the federal enactment providing for unemployment

compensation, training allowance, or relocation payments requires

joint federal-state financing of such payments, the commission may

participate in the programs by using funds appropriated by the

legislature to the extent provided by the legislature for such

programs.

     (j) The commission shall participate in any arrangement which

provides for the payment of compensation on the basis of combining

an individual's wages and employment covered under this act with

his or her wages and employment covered under the unemployment

compensation laws of other states, if the arrangement is approved

by the United States secretary of labor in consultation with the

state unemployment compensation agencies as reasonably calculated

to assure the prompt and full payment of compensation. An

arrangement shall include provisions for both of the following:

     (i) Applying the base period of a single state law to a claim

involving the combining of an individual's wages and employment

covered under 2 or more state unemployment compensation laws.

     (ii) Avoiding the duplicate use of wages and employment as a

result of the combining.

     (k) In a proceeding before any court, the commission and the

state shall be represented by the attorney general of this state or

attorneys designated by the attorney general. Only the attorney

general or other attorneys designated by the attorney general shall

act as legal counsel for the commission.