SB-0399, As Passed Senate, March 25, 2009

SUBSTITUTE FOR

SENATE BILL NO. 399

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

"Michigan employment security act,"

by amending section 64 (MCL 421.64), as amended by 2003 PA 174.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 64. (1)(a) Payment of extended benefits under this

section shall be made at the individual's weekly extended benefit

rate, for any week of unemployment which that begins in the

individual's eligibility period, to each individual who is fully

eligible and not disqualified under this act, who has exhausted all

rights to regular benefits under this act, who is not seeking or

receiving benefits with respect to that week under the unemployment

compensation law of Canada, and who does not have rights to

benefits under the unemployment compensation law of any other state

or the United States or to compensation or allowances under any

other federal law, such as the trade expansion act, the automotive

products trade act, or the railroad unemployment insurance act;

however, if the individual is seeking benefits and the appropriate

agency finally determines that the individual is not entitled to

benefits under another law, the individual shall be considered to

have exhausted the right to benefits. For the purpose of the

preceding sentence, an individual shall have exhausted the right to

regular benefits under this section with respect to any week of

unemployment in the individual's eligibility period under either of

the following circumstances:

     (i) When payments of regular benefits may not be made for that

week because the individual has received all regular benefits

available based on his or her employment or wages during the base

period for the current benefit year.

     (ii) When the right to the benefits has terminated before that

week by reason of the expiration or termination of the benefit year

with respect to which the right existed; and the individual has no,

or insufficient, wages or employment to establish a new benefit

year. However, for purposes of this subsection, an individual shall

be considered to have exhausted the right to regular benefits with

respect to any week of unemployment in his or her eligibility

period when the individual may become entitled to regular benefits

with respect to that week or future weeks, but the benefits are not

payable at the time the individual claims extended benefits because

final action on a pending redetermination or on an appeal has not

yet been taken with respect to eligibility or qualification for the

regular benefits or when the individual may be entitled to regular

benefits with respect to future weeks of unemployment, but regular

benefits are not payable with respect to any week of unemployment

in his or her eligibility period by reason of seasonal limitations

in any state unemployment compensation law.

     (b) Except where inconsistent with the provisions of this

section, the terms and conditions of this act that apply to claims

for regular benefits and to the payment of those benefits apply to

claims for extended benefits and to the payment of those benefits.

     (c) An individual shall not be paid additional compensation

and extended compensation with respect to the same week. If an

individual is potentially eligible for both types of compensation

in this state with respect to the same week, the bureau may pay

extended compensation instead of additional compensation with

respect to the week. If an individual is potentially eligible for

extended compensation in 1 state and potentially eligible for

additional compensation for the same week in another state, the

individual may elect which of the 2 types of compensation to claim.

     (2) The bureau shall establish, for each eligible individual

who files an application, an extended benefit account with respect

to that individual's benefit year. The amount established in the

account shall be determined as follows:

     (a) If subdivision (b) does not apply, whichever of the

following is smaller:

     (i) Fifty percent of the total amount of regular benefits

payable to the individual under this act during the benefit year.

     (ii) Thirteen times the individual's weekly extended benefit

rate.

     (b) With respect to a week beginning in a period in which the

average rate of total unemployment as described in subsection

(5)(c)(ii) equals or exceeds 8%, but no later than December 27, 2003

the end of the week in which extended benefits payable under this

section cease to be funded under section 2005 of the American

recovery and reinvestment act of 2009, Public Law 111-5, whichever

of the following is smaller:

     (i) Eighty percent of the total amount of regular benefits

payable to the individual under this act during the benefit year.

     (ii) Twenty times the individual's weekly extended benefit

rate.

     If an amount determined under this subsection is not an exact

multiple of 1/2 of the individual's weekly extended benefit rate,

the amount shall be decreased to the next lower such multiple.

     (3) All of the following apply to an extended benefit period:

     (a) The period begins with the third week after whichever of

the following weeks first occurs:

     (i) A week for which there is a national "on" indicator as

determined by the United States secretary of labor.

     (ii) A week for which there is a Michigan "on" indicator.

     (b) The period ends with the third week after the first week

for which there is both a national "off" indicator and a Michigan

"off" indicator.

     (c) The period is at least 13 consecutive weeks long, and does

not begin by reason of a Michigan "on" indicator before the

fourteenth week after the close of a prior extended benefit period

under this section. However, an extended benefit period terminates

with the week preceding the week for which no extended benefit

payments are considered to be shareable compensation under the

federal-state extended unemployment compensation act of 1970, title

II of Public Law 91-373, section 3304 nt of the internal revenue

code of 1986, 26 U.S.C. USC 3304 nt.

     (4) An individual's "eligibility period" consists of the weeks

in his or her benefit year that begin in an extended benefit

period, and if his or her benefit year ends within the extended

benefit period, any weeks thereafter that begin in the period.

     (5) (a) With respect to weeks beginning after September 25,

1982, a national "on" indicator for a week shall be determined by

the United States secretary of labor.

     (b) A national "off" indicator for a week shall be determined

by the United States secretary of labor.

     (c) There is a Michigan "on" indicator for a week if 1 or both

of the following apply:

     (i) The rate of insured unemployment under this act for the

period consisting of that week and the immediately preceding 12

weeks equaled or exceeded 120% of the average of the insured

unemployment rates for the corresponding 13-week period ending in

each of the preceding 2 calendar years, and equaled or exceeded 5%.

     (ii) For weeks beginning after the week in which the 2009

amendatory act that amended this subparagraph becomes effective and

ending on or before December 27, 2003 at the end of the week in

which extended benefits payable under this section cease to be

funded under section 2005 of the American recovery and reinvestment

act of 2009, Public Law 111-5, the average rate of total

unemployment in this state, seasonally adjusted, as determined by

the United States secretary of labor, for the period consisting of

the most recent 3 months for which data for all states are

published before the close of the week equaled or exceeded both of

the following:

     (A) Six and one-half percent.

     (B) One hundred ten percent of the average rate of total

unemployment in this state, seasonally adjusted, for the period

consisting of the corresponding 3-month period in either or both of

the preceding 2 calendar years.

     (d) There is a Michigan "off" indicator for a week if, for the

period consisting of that week and the immediately preceding 12

weeks, either subdivision (c)(i) or (c)(ii) was not satisfied.

Notwithstanding any other provision of this act, if this state is

in a period in which temporary extended unemployment compensation

is payable in this state under title II of the jobs job creation

and worker assistance act of 2002, Public Law 107-147, or another

similar federal law, and if the governor has the authority under

this that federal act or another similar federal law, then the

governor may elect to trigger "off" the Michigan indicator for

extended benefits under this act only for a period in which

temporary extended unemployment compensation is payable in this

state, if the election by the governor would not result in a

decrease in the number of weeks of unemployment benefits payable to

an individual under this act or under federal law.

     (e) For purposes of subdivisions (c) and (d), the rate of

insured unemployment for any 13-week period shall be determined by

reference to the average monthly covered employment under this act

for the first 4 of the most recent 6 calendar quarters ending

before the close of that period.

     (f) As used in this subsection, "rate of insured unemployment"

means the percentage determined by dividing:

     (i) The average weekly number of individuals filing claims for

regular benefits for weeks of unemployment with respect to the

specified period as determined on the basis of the reports made by

all state agencies or, in the case of subdivisions (c) and (d), by

the bureau, to the federal government; by

     (ii) In the case of subdivisions (c) and (d), the average

monthly covered employment under this act for the specified period.

     (g) Calculations under subdivisions (c) and (d) shall be made

by the bureau and shall conform to regulations, if any, prescribed

by the United States secretary of labor under authority of the

federal-state extended unemployment compensation act of 1970 title

II of Public Law 91-373, section 3304 nt of the internal revenue

code of 1986, 26 U.S.C. USC 3304 nt.

     (h) An "on" indicator under subdivision (c)(ii) applies to

claimants who qualify on or after the week ending May 24, 2003 and

before the week ending December 27, 2003 for benefits payable

beginning the week after the effective date of the 2009 amendatory

act that amended this subdivision and ending the last week extended

benefits under this section are funded under section 2005 of the

American recovery and reinvestment act of 2009, Public Act 111-5.

     (6) As used in this section:

     (a) "Regular benefits" means benefits payable to an individual

under this act and, unless otherwise expressly provided, under any

other state unemployment compensation law, including unemployment

benefits payable pursuant to sections 8501 to 8525 of title 5 of

the United States Code, 5 U.S.C. USC 8501 to 8525, other than

extended benefits, and other than additional benefits which

includes training benefits under section 27(g).

     (b) "Extended benefits" means benefits, including additional

benefits and unemployment benefits payable pursuant to sections

8501 to 8525 of title 5 of the United States Code, 5 U.S.C. USC

8501 to 8525, payable for weeks of unemployment beginning in an

extended benefit period to an individual as provided under this

section.

     (c) "Additional benefits" means benefits totally financed by a

state and payable to exhaustees by reason of conditions of high

unemployment or by reason of other special factors under the

provisions of any state law as well as training benefits paid under

section 27(g) with respect to an extended benefit period.

     (d) "Weekly extended benefit rate" means an amount equal to

the amount of regular benefits payable under this act to an

individual within the individual's benefit year for a week of total

unemployment, unless the individual had more than 1 weekly extended

benefit rate within that benefit year, in which case the

individual's weekly extended benefit rate shall be computed by

dividing the maximum amount of regular benefits payable under this

act within that benefit year by the number of weeks for which

benefits were payable, adjusted to the next lower multiple of

$1.00.

     (e) "Benefits payable" includes all benefits computed in

accordance with section 27(d), irrespective of whether the

individual was otherwise eligible for the benefits within his or

her current benefit year and irrespective of any benefit reduction

by reason of a disqualification which that required a reduction.

     (7) (a) Notwithstanding the provisions of subsection (1)(b),

an individual shall be ineligible for payment of extended benefits

for any week of unemployment if the bureau finds that during that

period either of the following occurred:

     (i) The individual failed to accept any offer of suitable work

or failed to apply for any suitable work to which the individual

was referred by the bureau.

     (ii) The individual failed to actively engage in seeking work

as described in subdivision (f).

     (b) Any individual who has been found ineligible for extended

benefits under subdivision (a) shall also be denied benefits

beginning with the first day of the week following the week in

which the failure occurred and until the individual has been

employed in each of 4 subsequent weeks, whether or not consecutive,

and has earned remuneration equal to not less than 4 times the

extended weekly benefit amount, as determined under subsection (2).

     (c) As used in this subsection, "suitable work" means, with

respect to any individual, any work which that is within that

individual's capabilities, if both of the following apply:

     (i) The gross weekly remuneration payable for the work exceeds

the sum of the following:

     (A) The individual's extended weekly benefit amount as

determined under subsection (2).

     (B) The amount, if any, of supplemental unemployment

compensation benefits, as defined in section 501(c)(7)(D)

501(c)(17)(D) of the internal revenue code of 1986, 26 USC

501(c)(17)(D), payable to the individual for that week.

     (ii) The employer pays wages not less than the higher of the

minimum wage provided by section 6(a)(1) of the fair labor

standards act of 1938, chapter 676, 52 Stat. 1062, 29 U.S.C. USC

206(a)(1), without regard to any exemption, or the applicable state

or local minimum wage.

     (d) An individual shall not be denied extended benefits for

failure to accept an offer of, or apply for, any job which that

meets the definition of suitability suitable work as described in

subdivision (c) if 1 or more of the following are true:

     (i) The position was not offered to the individual in writing

and was not listed with the state employment service.

     (ii) The failure could not result in a denial of benefits under

the definition of suitable work in section 29(6) to the extent that

the criteria of suitability in that section are not inconsistent

with the provisions of subdivision (c).

     (iii) The individual furnishes satisfactory evidence to the

bureau that his or her prospects for obtaining work in his or her

customary occupation within a reasonably short period are good. If

that evidence is deemed satisfactory for this purpose, the

determination of whether any work is suitable with respect to that

individual shall be made in accordance with the definition of

suitable work in section 29(6) without regard to the definition

specified by subdivision (c).

     (e) Notwithstanding subsection (1)(b), work shall not be

considered suitable work for an individual if the work does not

meet the labor standard provisions required by section 3304(a)(5)

of the internal revenue code and section 29(7).

     (f) For the purposes of subdivision (a)(ii), an individual is

actively engaged in seeking work during any week if both of the

following are true:

     (i) The individual has engaged in a systematic and sustained

effort to obtain work during that week.

     (ii) The individual furnishes tangible evidence to the bureau

that he or she has engaged in a systematic and sustained effort

during that week.

     (g) The bureau shall refer any applicant for extended benefits

to any suitable work which that meets the criteria prescribed in

subdivisions (c) and (d).

     (h) An individual is not eligible to receive extended benefits

with respect to any week of unemployment in his or her eligibility

period if that individual has been disqualified for benefits under

this act because he or she voluntarily left work, was discharged

for misconduct, or failed to accept an offer of or apply for

suitable work unless the individual requalified in accordance with

a specific provision of this act requiring that the individual be

employed subsequent to the week in which the act or discharge

occurred which that caused the disqualification.

     (8) (a) Except as provided in subdivision (b), payment of

extended benefits shall not be made to any individual for any week

of unemployment that otherwise would have been payable pursuant to

an interstate claim filed in any state under the interstate benefit

payment plan, if an extended benefit period is not in effect for

the week in the state in which the interstate claim is filed.

     (b) Subdivision (a) does not apply with respect to the first 2

weeks for which extended benefits are payable, pursuant to an

interstate claim, to the individual from the extended benefit

account established for the individual.

     (9) Notwithstanding the provisions of subsection (1)(b), an

individual who established a benefit year under section 46a on or

after January 2, 1983, shall be eligible to receive extended

benefits only if the individual earned wages in an amount exceeding

40 times the individual's most recent weekly benefit rate during

the base period of the benefit year which that is used to establish

the individual's extended benefit account under subsection (2).

     (10) This subsection shall be is effective for weeks of

unemployment beginning after October 30, 1982. Notwithstanding any

other provision of this section, an individual's extended benefit

entitlement, with respect to weeks of unemployment beginning after

the end of the benefit year, shall be reduced, but not below zero,

by the product of the number of weeks for which the individual

received any amounts of trade readjustment allowances, paid under

the trade act of 1974, Public Law 93-618, 88 Stat. 1978, within

that benefit year, multiplied by the individual's weekly benefit

amount for extended benefits.