HOUSE BILL No. 5217

 

August 4, 2009, Introduced by Rep. Green and referred to the Committee on Labor.

 

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

 

"Michigan employment security act,"

 

by amending section 46 (MCL 421.46), as amended by 1995 PA 25.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 46. (a) Subject to subsections (d) through (g) (f), for

 

benefit years beginning before the conversion date prescribed in

 

section 75 October 1, 2000, "benefit year" means the period of 52

 

consecutive calendar weeks beginning the first calendar week in

 

which an individual files a claim in accordance with section 32 and

 

meets all of the following conditions:

 

     (1) The individual has earned 20 credit weeks in the 52

 

consecutive calendar weeks before the week he or she files the

 

claim for benefits.

 

     (2) The individual is unemployed and meets all requirements of


 

section 28 for the week for which he or she files a claim for

 

benefits.

 

     (3) Except for a disqualification under section 29 (8) 29(8)

 

involving a labor dispute during the individual's most recent

 

period of employment with the most recent employer with whom the

 

individual earned a credit week, the individual is not disqualified

 

or subject to disqualification for the week for which he or she

 

files a claim.

 

     (4) The individual does not have a benefit year already in

 

effect at the time of the claim.

 

     (b) For benefit years beginning after the conversion date

 

prescribed in section 75 on or after October 1, 2000, "benefit

 

year" means the period of 52 consecutive calendar weeks beginning

 

the first calendar week in which an individual files a claim in

 

accordance with section 32. However, a benefit year shall not be

 

established unless the individual meets either of the following

 

conditions: (1) the

 

     (i) The total wages paid to the individual in the base period

 

of the claim equals not less than 1.5 times the wages paid to the

 

individual in the calendar quarter of the base period in which the

 

individual was paid the highest wages. , or (2) the

 

     (ii) The individual was paid wages in 2 or more calendar

 

quarters of the base period totaling at least 20 times the state

 

average weekly wage as determined by the commission.

 

     (c) For benefit years beginning after the conversion date

 

prescribed in section 75 October 1, 2000, the state average weekly

 

wage for a calendar year shall be computed on the basis of the 12


 

months ending the June 30 preceding that calendar year. A benefit

 

year shall not be established if the individual was not paid wages

 

of at least the state minimum hourly wage multiplied by 388.06

 

rounded down to the nearest dollar in at least 1 calendar quarter

 

of the base period. A benefit year shall not be established based

 

on base period wages previously used to establish a benefit year

 

that resulted in the payment of benefits. However, if a calendar

 

quarter of the base period contains wages that were previously used

 

to establish a benefit year that resulted in the payment of

 

benefits, a claimant may establish a benefit year using the wages

 

in the remaining calendar quarters from among the first 4 of the

 

last 5 completed calendar quarters, or if a benefit year cannot be

 

established using those quarters, then by using wages from among

 

the last 4 completed calendar quarters. A benefit year shall not be

 

established unless, after the beginning of the immediately

 

preceding benefit year during which the individual received

 

benefits, the individual worked and received remuneration in an

 

amount equal to at least 5 times the individual's most recent state

 

weekly benefit rate in effect during the individual's immediately

 

preceding benefit year. If a quarterly wage report has not been

 

submitted in a timely manner by the employer as provided in section

 

13 for any of the quarters of the base period, or if wage

 

information is not available for use by the commission for the most

 

recent completed calendar quarter, the commission may obtain and

 

use the claimant's statement of wages paid during the calendar

 

quarters for which the wage reports are missing to establish a

 

benefit year. A determination based on the claimant's statement of


 

wages paid during any of these calendar quarters shall be

 

redetermined if the quarterly wage report from the employer is

 

later received and would result in a change in the claimant's

 

weekly benefit amount or duration, or both, or if the quarterly

 

wage report from the employer later becomes available for use by

 

the commission and would result in a change in the claimant's

 

benefit amount or duration, or both. If the redetermination results

 

from the employer's failure to submit the quarterly wage report in

 

a timely manner, the redetermination shall be effective as to

 

benefits payable for weeks beginning after the receipt of

 

information not previously submitted by the employer.

 

     (d) If an individual files a claim for a 7-day period under

 

section 27(c), his or her benefit year begins the calendar week

 

containing the first day of that 7-day period.

 

     (e) If all or part of a claimant's right to benefits during

 

his or her benefit year is canceled under section 62(b), the

 

benefit year is terminated on the effective date of the

 

cancellation.

 

     (f) An individual may request a redetermination of his or her

 

benefit rights and cancellation of a previously established benefit

 

year if he or she has not completed a compensable period. Under

 

circumstances described in this subsection, the benefit year begins

 

the first day of the first week in which the request for

 

redetermination of benefit rights is duly filed.

 

     (g) Notwithstanding subsection (a), for services performed on

 

or after January 2, 1983, and with respect to benefit years

 

established before the conversion date prescribed in section 75, an


 

individual shall not be entitled to establish a benefit year based

 

in whole or in part on credit weeks for service in the employ of an

 

employing unit, not otherwise excluded under section 43(g), in

 

which more than 50% of the proprietary interest is owned by the

 

individual or his or her son, daughter, or spouse, or any

 

combination of these individuals, or in which more than 50% of the

 

proprietary interest is owned by the mother or father of a child

 

under the age of 18, or mother and father combined, unless both the

 

individual and the employer notify the commission, in response to

 

the commission's request for information, of the individual's

 

relationship to the owners of the proprietary interest in the

 

employing unit. Upon timely notification to the commission, a

 

benefit year may be established for the individual, if the

 

individual meets all of the following conditions: (1) has earned 20

 

credit weeks in the 52 consecutive calendar weeks preceding the

 

week with respect to which the individual filed an application for

 

benefits; (2) with respect to the week for which the individual is

 

filing an application for benefits is unemployed, and meets all of

 

the other requirements of section 28; (3) with respect to the week

 

for which the individual is filing an application for benefits the

 

individual is not disqualified nor subject to disqualification,

 

except in case of a labor dispute under section 29(8), with respect

 

to the most recent period of employment with the most recent

 

employer with whom the individual earned a credit week. If an

 

individual files an application for a 7-day period as provided in

 

section 27(c), the benefit year with respect to the individual

 

shall begin with the calendar week which contains the first day of


 

that 7-day period.

 

     (h) For benefit years established on or after July 1, 1983,

 

not more than 10 credit weeks based on services shall be used to

 

pay benefits. For the purpose of calculating the individual's

 

average weekly wage, all base period wages and credit weeks shall

 

be used. With respect to benefit years beginning after the

 

conversion date prescribed in section 75, and notwithstanding

 

subsection (a), an individual shall not be entitled to establish a

 

benefit year based in whole or in part on wages earned in service,

 

not otherwise excluded under section 43(g), in the employ of an

 

employing unit in which more than 50% of the proprietary interest

 

is owned by the individual or his or her son, daughter, spouse, or

 

any combination of these individuals, or in which more than 50% of

 

the proprietary interest is owned by the mother or father of a

 

child under the age of 18, or mother and father combined, unless

 

both the individual and the employer notify the commission, in

 

response to the commission's request for information, of the

 

individual's relationship to the owners of the proprietary interest

 

in the employing unit. Upon timely notification to the commission,

 

a benefit year may be established for the individual if the

 

individual meets the requirements of subsection (a). If wages in an

 

individual's base period were earned in service in the employ of

 

such an employing unit, the individual's weekly benefit rate shall

 

be calculated in accordance with section 27(b)(1) but the portion

 

of the benefit rate attributable to this service shall be payable

 

for not more than 7 weeks. The weekly benefit payment shall be

 

reduced thereafter by the percentage of charge attributable to


 

service with this employer, in accordance with section 20.