House Bill No. 4408 as amended March 22, 2011 (1 of 13)

(l) A person recording a lien ~~provided for in~~ under this

section shall pay a fee of $2.00 for recording a lien and a fee of

$2.00 for recording a discharge of a lien.

<<Sec. 27. (a)(1) When a determination, redetermination, or decision is made that benefits are due an unemployed individual, the

benefits shall become payable from the fund and continue to be

payable to the unemployed individual, subject to the limitations

imposed by the individual's monetary entitlement, if the individual

continues to be unemployed and to file claims for benefits, until

the determination, redetermination, or decision is reversed, a

determination, redetermination, or decision on a new issue holding

the individual disqualified or ineligible is made, or, for benefit

years beginning before October 1, 2000, a new separation issue

arises resulting from subsequent work.

(2) Benefits shall be paid in person or by mail through

Employment offices in accordance with rules promulgated by the commission.

(b)(1) Subject to subsection (f), the weekly benefit rate for

an individual, with respect to benefit years beginning before

October 1, 2000, shall be 67% of the individual's average after tax weekly wage, except that the individual's maximum weekly benefit

rate shall not exceed $300.00. However, with respect to benefit

years beginning on or after October 1, 2000, the individual's weekly benefit rate is 4.1% of the individual's wages paid in the calendar quarter of the base period

in which the individual was paid the highest total wages, plus $6.00

for each dependent as defined in subdivision (4), up to a maximum

of 5 dependents, claimed by the individual at the time the individual files a new claim for benefits, except that the individual's maximum weekly benefit rate shall not exceed $300.00 before April 26, 2002

and $362.00 for claims filed on and after April 26, 2002. The weekly benefit rate for an individual claiming benefits on and after

April 26, 2002 shall be recalculated subject to the $362.00 maximum weekly benefit rate. The unemployment agency shall establish the procedures necessary to verify the number of dependents claimed. If a person fraudulently claims a dependent, that person is subject to the

penalties set forth in sections 54 and 54c. For benefit years

beginning on or after October 2, 1983, the weekly benefit rate shall

be adjusted to the next lower multiple of $1.00.

(2) For benefit years beginning before 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 immediately before that calendar year. The commission shall prepare a table of weekly benefit rates based on an "average after tax weekly wage" calculated by subtracting, from an individual's average weekly wage as determined

in accordance with section 51, a reasonable approximation of the

weekly amount required to be withheld by the employer from the remuneration of the individual based on dependents and exemptions for income taxes under 26 USC 3401 to 3406, and under section 351 of the income tax act of 1967, 1967 PA 281, MCL 206.351, and for old age and survivor's disability insurance taxes under the federal insurance contributions act, 26 USC 3101 to 3128. For purposes of applying the table to an individual's claim, a dependent shall be as defined in subdivision (3). The table applicable to an individual's claim shall

be the table reflecting the number of dependents claimed by the individual under subdivision (3). The commission shall adjust the

tables based on changes in withholding schedules published by the

United States department of treasury, internal revenue service, and

by the department of treasury. The number of dependents allowed shall

be determined with respect to each week of unemployment for which an individual is claiming benefits.

(3) For benefit years beginning before October 1, 2000, a

dependent means any of the following persons who is are receiving

and for at least 90 consecutive days immediately before the week for which benefits are claimed, or, in the case of a dependent husband,

wife, or child, for the duration of the marital or parental

relationship, if the relationship has existed less than 90 days, has received more than ~~half~~ 1/2 the cost of his or her support from the individual claiming benefits:

(a) A child, including stepchild, adopted child, or grandchild

of the individual who is under 18 years of age, or 18 years of age or over if, because of physical or mental infirmity, the child is

unable to engage in a gainful occupation, or is a full-time student

as defined by the particular educational institution, at a high school, vocational school, community or junior college, or college or

university and has not attained the age of 22.

(b) The husband or wife of the individual.

parent is either more than 65 years of age or is permanently disabled from engaging in a gainful occupation.

(d) A brother or sister of the individual if the brother or

sister is orphaned or the living parents are dependent parents of an individual, and the brother or sister is under 18 years of age, or 18 years of age or over if, because of physical or mental infirmity, the brother or sister is unable to engage in a gainful occupation, or is a full-time student as defined by the particular educational

institution, at a high school, vocational school, community or junior college, or college or university and is less than 22 years of age.

(4) For benefit years beginning on or after October 1, 2000, a dependent means any of the following persons who received for at

least 90 consecutive days immediately before the first week of the benefit year or, in the case of a dependent husband, wife, or child,

for the duration of the marital or parental relationship if the relationship existed less than 90 days before the beginning of the benefit year, has received more than 1/2 the cost of his or her

support from the individual claiming the benefits:

(a) A child, including stepchild, adopted child, or grandchild

of the individual who is under 18 years of age, or 18 years of age

and over if, because of physical or mental infirmity, the child is

unable to engage in a gainful occupation, or is a full-time student

as defined by the particular educational institution, at a high

school, vocational school, community or junior college, or college

or university and has not attained the age of 22.

(b) The husband or wife of the individual.

parent is either more than 65 years of age or is permanently

disabled from engaging in a gainful occupation.

(d) A brother or sister of the individual if the brother or

sister is orphaned or the living parents are dependent parents of

an individual, and the brother or sister is under 18 years of age,

or 18 years of age and over if, because of physical or mental

infirmity, the brother or sister is unable to engage in a gainful occupation, or is a full-time student as defined by the particular educational institution, at a high school, vocational school,

community or junior college, or college or university and is less

than 22 years of age.

(5) For benefit years beginning before October 1, 2000,

dependency status of a dependent, child or otherwise, once

established or fixed in favor of an individual continues during

the individual's benefit year until terminated. Dependency status

of a dependent terminates at the end of the week in which the

dependent ceases to be an individual described in subdivision

(3)(a), (b), (c), or (d) because of age, death, or divorce.

For benefit years beginning on or after October 1, 2000, the number

of dependents established for an individual at the beginning of the benefit year shall remain in effect during the entire benefit year.

(6) For benefit years beginning before October 1, 2000,

failure on the part of an individual, due to misinformation or

lack of information, to furnish all information material for determination of the number of the individual's dependents when the individual files a claim for benefits with respect to a week is good cause to issue a redetermination as to the amount of benefits based

on the number of the individual's dependents as of the beginning

date of that week. Dependency status of a dependent, child or

otherwise, once established or fixed in favor of a person is not transferable to or usable by another person with respect to the same week.

For benefit years beginning on or after October 1, 2000,

failure on the part of an individual, due to misinformation or

lack of information, to furnish all information material for determination of the number of the individual's dependents is

good cause to issue a redetermination as to the amount of benefits

based on the number of the individual's dependents as of the

beginning of the benefit year.

(1) Each eligible individual shall be paid a weekly benefit

rate with respect to the week for which the individual earns or

receives no remuneration. Notwithstanding the definition of week

in section 50, if within 2 consecutive weeks in which an individual

was not unemployed within the meaning of section 48 there was a

period of 7 or more consecutive days for which the individual

did not earn or receive remuneration, that period shall be

considered a week for benefit purposes under this act if a claim

for benefits for that period is filed not later than 30 days after

the end of the period.

(2) Each eligible individual shall have his or her weekly

benefit rate reduced with respect to each week in which the

individual earns or receives remuneration at the rate of 50 cents

for each whole $1.00 of remuneration earned or received during

that week.

(3) An individual who receives or earns partial remuneration

may not receive a total of benefits and earnings that exceeds

1-1/2 times his or her weekly benefit amount. For each dollar of

total benefits and earnings that exceeds 1-1/2 times the individual's weekly benefit amount, benefits shall be reduced by $1.00.

(4) If the reduction in a claimant's benefit rate for a week

in accordance with subdivision (2) or (3) results in a benefit rate greater than zero for that week, the claimant's balance of weeks of benefit payments shall be reduced by 1 week.

(5) All remuneration for work performed during a shift that terminates on 1 day but that began on the preceding day shall be considered to have been earned by the eligible individual on the preceding day.

(d) For benefit years beginning before October 1, 2000, and

subject to subsection (f) and this subsection, the amount of

benefits to which an individual who is otherwise eligible is entitled during a benefit year from an employer with respect to employment

during the base period is the amount obtained by multiplying the

weekly benefit rate with respect to that employment by 3/4 of the

number of credit weeks earned in the employment. For the purpose

of this subsection and section 20(c), if the resultant product is

not an even multiple of 1/2 the weekly benefit rate, the product

shall be raised to an amount equal to the next higher multiple of

1/2 the weekly benefit rate, and, for an individual who was employed

by only 1 employer in the individual's base period and earned 34

credit weeks with that employer, the product shall be raised to

the next higher multiple of the weekly benefit rate. The maximum

amount of benefits payable to an individual within a benefit year,

with respect to employment by an employer, shall not exceed 26

times the weekly benefit rate with respect to that employment. The maximum amount of benefits payable to an individual within a benefit

year shall not exceed the amount to which the individual would be entitled for 26 weeks of unemployment in which remuneration was not earned or received. The limitation of total benefits set forth in

this subsection does not apply to claimants declared eligible for training benefits in accordance with subsection (g). For benefit

years beginning on or after October 1, 2000, and subject to subsection (f) and this subsection, the maximum benefit amount payable to an individual in a benefit year for purposes of this section and section 20(d) is the number of weeks of benefits payable to an individual

during the benefit year, multiplied by the individual's weekly benefit rate. The number of weeks of benefits payable to an individual shall

be calculated by taking 43% of the individual's base period wages and dividing the result by the individual's weekly benefit rate. If the quotient is not a whole or half number, the result shall be rounded

down to the nearest half number. However, for each eligible individual filing an initial claim before January 15, 2012, not more than 26

weeks of benefits or less than 14 weeks of benefits shall be payable

to an individual in a benefit year. For each eligible individual

filing an initial claim on or after January 15, 2012, not more than

20 weeks of benefits or less than 14 weeks of benefits shall be

payable to an individual in a benefit year. The limitation of total benefits set forth in this subsection does not apply to claimants declared eligible for training benefits in accordance with subsection (g).

(e) When a claimant dies or is judicially declared insane or mentally incompetent, unemployment compensation benefits accrued and payable to that person for weeks of unemployment before death,

insanity, or incompetency, but not paid, shall become due and

payable to the person who is the legal heir or guardian of the

claimant or to any other person found by the commission to be

equitably entitled to the benefits by reason of having incurred

expense in behalf of the claimant for the claimant's burial or other necessary expenses.

(f)(1) For benefit years beginning before October 1, 2000, and notwithstanding any inconsistent provisions of this act, the weekly benefit rate of each individual who is receiving or will receive a "retirement benefit", as defined in subdivision (4), shall be

adjusted as provided in subparagraphs (a), (b), and (c). However,

an individual's extended benefit account and an individual's weekly extended benefit rate under section 64 shall be established without reduction under this subsection unless subdivision (5) is in effect. Except as otherwise provided in this subsection, all other provisions

of this act continue to apply in connection with the benefit claims

of those retired persons.

(a) If and to the extent that unemployment benefits payable

under this act would be chargeable to an employer who has

contributed to the financing of a retirement plan under which the claimant is receiving or will receive a retirement benefit yielding

a pro rata weekly amount equal to or larger than the claimant's

weekly benefit rate as otherwise established under this act, the

claimant shall not receive unemployment benefits that would be

chargeable to the employer under this act.

(b) If and to the extent that unemployment benefits payable

under this act would be chargeable to an employer who has

contributed to the financing of a retirement plan under which the claimant is receiving or will receive a retirement benefit yielding

a pro rata weekly amount less than the claimant's weekly benefit

rate as otherwise established under this act, then the weekly

benefit rate otherwise payable to the claimant and chargeable to the employer under this act shall be reduced by an amount equal to the

pro rata weekly amount, adjusted to the next lower multiple of $1.00, which the claimant is receiving or will receive as a retirement

benefit.

(c) If the unemployment benefit payable under this act would be chargeable to an employer who has not contributed to the financing

of a retirement plan under which the claimant is receiving or will receive a retirement benefit, then the weekly benefit rate of the claimant as otherwise established under this act shall not be reduced

due to receipt of a retirement benefit.

(d) If the unemployment benefit payable under this act is

computed on the basis of multiemployer credit weeks and a portion

of the benefit is allocable under section 20(e) to an employer who

has contributed to the financing of a retirement plan under which the claimant is receiving or will receive a retirement benefit, the adjustments required by subparagraph (a) or (b) apply only to that portion of the weekly benefit rate that would otherwise be allocable

and chargeable to the employer.

(2) If an individual's weekly benefit rate under this act was established before the period for which the individual first receives

a retirement benefit, any benefits received after a retirement benefit becomes payable shall be determined in accordance with the formula

stated in this subsection.

(3) When necessary to assure prompt payment of benefits, the commission shall determine the pro rata weekly amount yielded by an individual's retirement benefit based on the best information

currently available to it. In the absence of fraud, a determination

shall not be reconsidered unless it is established that the

individual's actual retirement benefit in fact differs from the

amount determined by $2.00 or more per week. The reconsideration shall apply only to benefits as may be claimed after the information on

which the reconsideration is based was received by the commission.

(4)(a) As used in this subsection, "retirement benefit" means a benefit, annuity, or pension of any type or that part thereof that is described in subparagraph (b) that is both:

(i) Provided as an incident of employment under an established retirement plan, policy, or agreement, including federal social

security if subdivision (5) is in effect.

(ii) Payable to an individual because the individual has

qualified on the basis of attained age, length of service, or

disability, whether or not the individual retired or was retired

from employment. Amounts paid to individuals in the course of

liquidation of a private pension or retirement fund because of termination of the business or of a plant or department of the

business of the employer involved are not retirement benefits.

(b) If a benefit as described in subparagraph (a) is payable

or paid to the individual under a plan to which the individual has contributed:

(i) Less than ~~half~~ 1/2 of the cost of the benefit, then only

~~half~~ 1/2 of the benefit is treated as a retirement benefit.

(ii) ~~Half~~ One-half or more of the cost of the benefit, then

none of the benefit is treated as a retirement benefit.

(c) The burden of establishing the extent of an individual's contribution to the cost of his or her retirement benefit for the

purpose of subparagraph (b) is upon the employer who has contributed

to the plan under which a benefit is provided.

(5) Notwithstanding any other provision of this subsection,

for any week that begins after March 31, 1980, and with respect

to which an individual is receiving a governmental or other pension

and claiming unemployment compensation, the weekly benefit amount

payable to the individual for those weeks shall be reduced, but

not below zero, by the entire prorated weekly amount of any

governmental or other pension, retirement or retired pay, annuity,

or any other similar payment that is based on any previous work of

the individual. This reduction shall be made only if it is required

as a condition for full tax credit against the tax imposed by the

federal unemployment tax act, 26 USC 3301 to 3311.

(6) For benefit years beginning on or after October 1, 2000, notwithstanding any inconsistent provisions of this act, the weekly benefit rate of each individual who is receiving or will receive a retirement benefit, as defined in subdivision (4), shall be adjusted

as provided in subparagraphs (a), (b), and (c). However, an

individual's extended benefit account and an individual's weekly

extended benefit rate under section 64 shall be established without reduction under this subsection, unless subdivision (5) is in effect. Except as otherwise provided in this subsection, all the other

provisions of this act apply to the benefit claims of those retired persons. However, if the reduction would impair the full tax credit against the tax imposed by the federal unemployment tax act, 26 USC

3301 to 3311, unemployment benefits shall not be reduced as provided

in subparagraphs (a), (b), and (c) for receipt of any governmental or other pension, retirement or retired pay, annuity, or other similar payment that was not includable in the gross income of the individual

for the taxable year in which it was received because it was a part

of a rollover distribution.

(a) If any base period or chargeable employer has contributed

to the financing of a retirement plan under which the claimant is receiving or will receive a retirement benefit yielding a pro rata

weekly amount equal to or larger than the claimant's weekly benefit

rate as otherwise established under this act, the claimant shall not receive unemployment benefits.

(b) If any base period employer or chargeable employer has contributed to the financing of a retirement plan under which the claimant is receiving or will receive a retirement benefit yielding

a pro rata weekly amount less than the claimant's weekly benefit

rate as otherwise established under this act, then the weekly

benefit rate otherwise payable to the claimant shall be reduced by

an amount equal to the pro rata weekly amount, adjusted to the next

lower multiple of $1.00, which the claimant is receiving or will

receive as a retirement benefit.

to the financing of a retirement plan under which the claimant is receiving or will receive a retirement benefit, then the weekly

benefit rate of the claimant as otherwise established under this

act shall not be reduced due to receipt of a retirement benefit.

(g) Notwithstanding any other provision of this act, an

individual pursuing vocational training or retraining pursuant to

section 28(2) who has exhausted all benefits available under

subsection (d) may be paid for each week of approved vocational

training pursued beyond the date of exhaustion a benefit amount in accordance with subsection (c), but not in excess of the individual's most recent weekly benefit rate. However, an individual shall not be

paid training benefits totaling more than 18 times the individual's

most recent weekly benefit rate. The expiration or termination of a benefit year shall not stop or interrupt payment of training benefits

if the training for which the benefits were granted began before expiration or termination of the benefit year.

(h) A payment of accrued unemployment benefits shall not be

made to an eligible individual or in behalf of that individual as provided in subsection (e) more than 6 years after the ending date of

the benefit year covering the payment or 2 calendar years after the calendar year in which there is final disposition of a contested case, whichever is later.

(i) Benefits based on service in employment described in section 42(8), (9), and (10) are payable in the same amount, on the same terms, and subject to the same conditions as compensation payable on the basis of other service subject to this act, except that:

(1) With respect to service performed in an instructional, research, or principal administrative capacity for an institution of higher education as defined in section 53(2), or for an educational institution other than an institution of higher education as defined

in section 53(3), benefits shall not be paid to an individual based

on those services for any week of unemployment beginning after

December 31, 1977 that commences during the period between 2

successive academic years or during a similar period between 2

regular terms, whether or not successive, or during a period of paid sabbatical leave provided for in the individual's contract, to an individual if the individual performs the service in the first of

the academic years or terms and if there is a contract or a reasonable assurance that the individual will perform service in an

instructional, research, or principal administrative capacity for

an institution of higher education or an educational institution

other than an institution of higher education in the second of the academic years or terms, whether or not the terms are successive.

(2) With respect to service performed in other than an instructional, research, or principal administrative capacity for an institution of higher education as defined in section 53(2) or for

an educational institution other than an institution of higher

education as defined in section 53(3), benefits shall not be paid

based on those services for any week of unemployment beginning after December 31, 1977 that commences during the period between 2

successive academic years or terms to any individual if that

individual performs the service in the first of the academic

years or terms and if there is a reasonable assurance that the

individual will perform the service for an institution of higher education or an educational institution other than an institution

of higher education in the second of the academic years or terms.

(3) With respect to any service described in subdivision (1)

or (2), benefits shall not be paid to an individual based upon

service for any week of unemployment that commences during an

established and customary vacation period or holiday recess if

the individual performs the service in the period immediately before

the vacation period or holiday recess and there is a contract or reasonable assurance that the individual will perform the service in

the period immediately following the vacation period or holiday

recess.

(4) If benefits are denied to an individual for any week solely

as a result of subdivision (2) and the individual was not offered an opportunity to perform in the second academic year or term the service for which reasonable assurance had been given, the individual is

entitled to a retroactive payment of benefits for each week for

which the individual had previously filed a timely claim for benefits.

An individual entitled to benefits under this subdivision may apply

for those benefits by mail in accordance with R 421.210 of the

Michigan administrative code as promulgated by the commission.

(5) Benefits based upon services in other than an instructional, research, or principal administrative capacity for an institution of higher education shall not be denied for any week of unemployment commencing during the period between 2 successive academic years or

terms solely because the individual had performed the service in the first of the academic years or terms and there is reasonable

assurance that the individual will perform the service for an

institution of higher education or an educational institution other

than an institution of higher education in the second of the academic years or terms, unless a denial is required as a condition for full

tax credit against the tax imposed by the federal unemployment tax

act, 26 USC 3301 to 3311.

(6) For benefit years established before October 1, 2000, and notwithstanding subdivisions (1), (2), and (3), the denial of

benefits does not prevent an individual from completing requalifying weeks in accordance with section 29(3) nor does the denial prevent an individual from receiving benefits based on service with an employer other than an educational institution for any week of unemployment occurring between academic years or terms, whether or not successive,

or during an established and customary vacation period or holiday

recess, even though the employer is not the most recent chargeable employer in the individual's base period. However, in that case

section 20(b) applies to the sequence of benefit charging, except

for the employment with the educational institution, and section 50(b) applies to the calculation of credit weeks. When a denial of benefits under subdivision (1) no longer applies, benefits shall be charged in accordance with the normal sequence of charging as provided in section 20(b).

(7) For benefit years beginning on or after October 1, 2000, and notwithstanding subdivisions (1), (2), and (3), the denial of benefits shall not prevent an individual from completing requalifying weeks in accordance with section 29(3) nor shall the denial prevent an

individual from receiving benefits based on service with another base period employer other than an educational institution for any week of unemployment occurring between academic years or terms, whether or not successive, or during an established and customary vacation period or holiday recess. However, when benefits are paid based on service with

1 or more base period employers other than an educational institution,

the individual's weekly benefit rate shall be calculated in

accordance with subsection (b)(1) but during the denial period the individual's weekly benefit payment shall be reduced by the portion

of the payment attributable to base period wages paid by an

educational institution and the account or experience account of the educational institution shall not be charged for benefits payable to

the individual. When a denial of benefits under subdivision (1) is no longer applicable, benefits shall be paid and charged on the basis of base period wages with each of the base period employers including the educational institution.

(8) For the purposes of this subsection, "academic year" means

that period, as defined by the educational institution, when classes

are in session for that length of time required for students to receive sufficient instruction or earn sufficient credit to complete academic requirements for a particular grade level or to complete instruction

in a noncredit course.

(9) In accordance with subdivisions (1), (2), and (3), benefits

for any week of unemployment shall be denied to an individual who performed services described in subdivision (1), (2), or (3) in an educational institution while in the employ of an educational service agency. For the purpose of this subdivision, "educational service

agency" means a governmental agency or governmental entity that is established and operated exclusively for the purpose of providing the services to 1 or more educational institutions.

(j) Benefits shall not be paid to an individual on the basis of

any base period services, substantially all of which consist of participating in sports or athletic events or training or preparing

to participate, for a week that commences during the period between 2 successive sport seasons or similar periods if the individual

performed the services in the first of the seasons or similar periods

and there is a reasonable assurance that the individual will perform

the services in the later of the seasons or similar periods.

(k)(1) Benefits are not payable on the basis of services

performed by an alien unless the alien is an individual who was

lawfully admitted for permanent residence at the time the services

were performed, was lawfully present for the purpose of performing

the services, or was permanently residing in the United States under color of law at the time the services were performed, including an

alien who was lawfully present in the United States under section 212(d)(5) of the immigration and nationality act, 8 USC 1182.

(2) Any data or information required of individuals applying for benefits to determine whether benefits are payable because of their

alien status are uniformly required from all applicants for benefits.

(3) If an individual's application for benefits would otherwise

be approved, a determination that benefits to that individual are not payable because of the individual's alien status shall not be made

except upon a preponderance of the evidence.

(m)(1) An individual filing a new claim for unemployment compensation under this act, at the time of filing the claim, shall disclose whether the individual owes child support obligations as

defined in this subsection. If an individual discloses that he or she owes child support obligations and is determined to be eligible for unemployment compensation, the commission shall notify the state or

local child support enforcement agency enforcing the obligation that

the individual has been determined to be eligible for unemployment compensation.

(2) Notwithstanding section 30, the commission shall deduct and withhold from any unemployment compensation payable to an individual

who owes child support obligations by using whichever of the

following methods results in the greatest amount:

(a) The amount, if any, specified by the individual to be

deducted and withheld under this subdivision.

(b) The amount, if any, determined pursuant to an agreement submitted to the commission under 42 USC 654(19)(b)(i), by the state

or local child support enforcement agency.

from unemployment compensation by legal process, as that term is

defined in 42 USC 659(i)(5), properly served upon the commission.

(3) The amount of unemployment compensation subject to

deduction under subdivision (2) is that portion that remains payable

to the individual after application of the recoupment provisions of section 62(a) and the reduction provisions of subsections (c) and

(f).

(4) Any amount deducted and withheld under subdivision (2) shall

be paid by the commission to the appropriate state or local child

support enforcement agency.

(5) Any amount deducted and withheld under subdivision (2) shall

be treated for all purposes as if it were paid to the individual as unemployment compensation and paid by the individual to the state or local child support enforcement agency in satisfaction of the individual's child support obligations.

(6) Provisions concerning deductions under this subsection apply only if the state or local child support enforcement agency agrees in writing to reimburse and does reimburse the commission for the administrative costs incurred by the commission under this subsection that are attributable to child support obligations being enforced

by the state or local child support enforcement agency. The administrative costs incurred shall be determined by the commission.

The commission, in its discretion, may require payment of

administrative costs in advance.

(7) As used in this subsection:

(a) "Unemployment compensation", for purposes of subdivisions

(1) to (5), means any compensation payable under this act, including amounts payable by the commission pursuant to an agreement under any federal law providing for compensation, assistance, or allowances

with respect to unemployment.

(b) "Child support obligations" includes only obligations that

are being enforced pursuant to a plan described in 42 USC 654 that

has been approved by the secretary of health and human services under

42 USC 651 to 669b.

(c) "State or local child support enforcement agency" means any agency of this state or a political subdivision of this state

operating pursuant to a plan described in subparagraph (b).

(n) Subsection (i)(2) applies to services performed by school

bus drivers employed by a private contributing employer holding a contractual relationship with an educational institution, but only if

at least 75% of the individual's base period wages with that employer

are attributable to services performed as a school bus driver.

(o)(1) For weeks of unemployment beginning after July 1, 1996, unemployment benefits based on services by a seasonal worker

performed in seasonal employment are payable only for weeks of unemployment that occur during the normal seasonal work period.

Benefits shall not be paid based on services performed in seasonal employment for any week of unemployment beginning after March 28,

1996 that begins during the period between 2 successive normal

seasonal work periods to any individual if that individual performs

the service in the first of the normal seasonal work periods and if

there is a reasonable assurance that the individual will perform

the service for a seasonal employer in the second of the normal

seasonal work periods. If benefits are denied to an individual for

any week solely as a result of this subsection and the individual

is not offered an opportunity to perform in the second normal

seasonal work period for which reasonable assurance of employment

had been given, the individual is entitled to a retroactive payment

of benefits under this subsection for each week that the individual previously filed a timely claim for benefits. An individual may apply

for any retroactive benefits under this subsection in accordance

with R 421.210 of the Michigan administrative code.

(2) Not less than 20 days before the estimated beginning date

of a normal seasonal work period, an employer may apply to the

commission in writing for designation as a seasonal employer. At

the time of application, the employer shall conspicuously display

a copy of the application on the employer's premises. Within 90 days after receipt of the application, the commission shall determine if

the employer is a seasonal employer. A determination or

redetermination of the commission concerning the status of an

employer as a seasonal employer, or a decision of a referee or the

board of review, or of the courts of this state concerning the status

of an employer as a seasonal employer, which has become final,

together with the record thereof, may be introduced in any proceeding involving a claim for benefits, and the facts found and decision

issued in the determination, redetermination, or decision shall be conclusive unless substantial evidence to the contrary is introduced

by or on behalf of the claimant.

(3) If the employer is determined to be a seasonal employer, the employer shall conspicuously display on its premises a notice of the determination and the beginning and ending dates of the employer's

normal seasonal work periods. The notice shall be furnished by the commission. The notice shall additionally specify that an employee

must timely apply for unemployment benefits at the end of a first seasonal work period to preserve his or her right to receive

retroactive unemployment benefits if he or she is not reemployed by

the seasonal employer in the second of the normal seasonal work

periods.

(4) The commission may issue a determination terminating an employer's status as a seasonal employer on the commission's own

motion for good cause, or upon the written request of the employer.

A termination determination under this subdivision terminates an employer's status as a seasonal employer, and becomes effective on

the beginning date of the normal seasonal work period that would

have immediately followed the date the commission issues the determination. A determination under this subdivision is subject to review in the same manner and to the same extent as any other determination under this act.

(5) An employer whose status as a seasonal employer is

terminated under subdivision (4) may not reapply for a seasonal

employer status determination until after a regularly recurring

normal seasonal work period has begun and ended.

(6) If a seasonal employer informs an employee who received assurance of being rehired that, despite the assurance, the employee

will not be rehired at the beginning of the employer's next normal seasonal work period, this subsection does not prevent the employee

from receiving unemployment benefits in the same manner and to the

same extent he or she would receive benefits under this act from an employer who has not been determined to be a seasonal employer.

(7) A successor of a seasonal employer is considered to be a seasonal employer unless the successor provides the commission,

within 120 days after the transfer, with a written request for termination of its status as a seasonal employer in accordance with subdivision (4).

(8) At the time an employee is hired by a seasonal employer,

the employer shall notify the employee in writing if the employee

will be a seasonal worker. The employer shall provide the worker

with written notice of any subsequent change in the employee's

status as a seasonal worker. If an employee of a seasonal employer

is denied benefits because that employee is a seasonal worker, the

employee may contest that designation in accordance with section

32a.

(9) As used in this subsection:

(a) "Construction industry" means the work activity designated

in sector group 23 - construction of the North American

classification system - United States office of management and budget, 1997 edition.

(b) "Normal seasonal work period" means that period or those periods of time determined under rules promulgated by the commission during which an individual is employed in seasonal employment.

(c) "Seasonal employment" means the employment of 1 or more individuals primarily hired to perform services in an industry,

other than the construction industry, that does either of the

following:

(1) Customarily operates during regularly recurring periods of

26 weeks or less in any 52-consecutive-week period.

(2) Customarily employs at least 50% of its employees for

regularly recurring periods of 26 weeks or less within a period of

52 consecutive weeks.

(d) "Seasonal employer" means an employer, other than an

employer in the construction industry, who applies to the commission

for designation as a seasonal employer and who the commission

determines to be an employer whose operations and business are substantially engaged in seasonal employment.

(e) "Seasonal worker" means a worker who has been paid wages

by a seasonal employer for work performed only during the normal

seasonal work period.

(10) This subsection does not apply if the United States

department of labor finds it to be contrary to the federal

unemployment tax act, 26 USC 3301 to 3311, or the social

security act, chapter 531, 49 Stat. 620, and if conformity with

the federal law is required as a condition for full tax credit

against the tax imposed under the federal unemployment tax act, 26

USC 3301 to 3311, or as a condition for receipt by the commission of federal administrative grant funds under the social security act,

chapter 531, 49 Stat. 620.

(p) Benefits shall not be paid to an individual based upon his

or her services as a school crossing guard for any week of

unemployment that begins between 2 successive academic years or

terms, if that individual performs the services of a school crossing guard in the first of the academic years or terms and has a reasonable assurance that he or she will perform those services in the second of

the academic years or terms.>>

Sec. 54. (a) A person who willfully violates or intentionally

fails to comply with any of the provisions of this act, or a

regulation of the ~~commission~~ unemployment agency promulgated under

the authority of this act for which a penalty is not otherwise

provided by this act is ~~punishable as provided in subdivision (~~i),

(ii~~), (~~~~iii~~~~), or (~~iv) subject to the following sanctions,

notwithstanding any other statute of this state or of the United

States:

(i) If the ~~commission~~ unemployment agency determines that an

amount has been obtained or withheld as a result of the intentional

failure to comply with this act, the ~~commission~~ unemployment agency

may recover the amount obtained as a result of the intentional

failure to comply plus damages equal to 3 times that amount.

(ii) The ~~commission~~ unemployment agency may refer the matter to

the prosecuting attorney of the county in which the alleged

violation occurred for prosecution. If the ~~commission~~ unemployment

agency has not made its own determination under subdivision (i), the

~~penalty~~ recovery sought by the prosecutor shall include the amount

described in subdivision (i) and shall also include 1 or more of the

following penalties:

(A) If the amount obtained or withheld from payment as a

result of the intentional failure to comply is less than

$25,000.00, then 1 of the following:

(I) Imprisonment for not more than 1 year.

House Bill No. 4408 as amended March 23, 2011 (1 of 6)

limitation provided in subsection (a).

agency under this section is final unless an application for a

redetermination is filed ~~with the commission~~ in accordance with

section 32a.

(d) The ~~commission~~ unemployment agency shall take the action

necessary to recover all benefits improperly obtained or paid under

this act, and to enforce all interest and penalties under

subsection (b).

(e) Interest recovered under this section shall be deposited

in the special fraud control fund created in section 10.

<<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 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 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.

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, section 3304 nt of

the internal revenue code of 1986, 26 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.

(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%. With respect to

compensation for each week of unemployment beginning after December 17, 2010 and ending December 31, 2011, 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 3 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 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, December 17, 2010 and ending with the week ending 4 weeks before the last week of unemployment for which 100% federal sharing is available under

section 2005(a) of Public Law 111-5, without regard to the extension

of federal sharing for certain claims as provided under section

2005(c) of that law, 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~~

any or all of the preceding 2 3 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 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 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 USC 3304 nt.

~~(h) An "on" indicator under subdivision (c)(ii) applies to claimants who qualify 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 5 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 5 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 that required a reduction.

(7) (a) Notwithstanding the provisions of subsection (1)(b), an individual ~~shall be~~ is 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).

respect to any individual, any work 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)(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, 29 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 that meets the definition of 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~~ in subdivision (c).

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

~~considered~~ is not 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 of 1986, 26 USC 3304(a)(5), 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 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 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 that is used to establish the individual's extended benefit account under subsection (2).

(10) This subsection 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, within that benefit year,

multiplied by the individual's weekly benefit amount for extended benefits.>>

HOUSE BILL No. 4408