SB-1008, As Passed Senate, December 13, 2016

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1008

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

"Michigan employment security act,"

by amending section 10 (MCL 421.10), as amended by 2015 PA 57.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 10. (1) There is created in the department of treasury a

special fund to be known and designated as the administration fund

(Michigan employment security act). Any balances in the

administration fund at the end of any fiscal year of this state

shall be carried over as a part of the administration fund and

shall not revert to the general fund of this state. Except as

otherwise provided in subsection (3), all money deposited into the

administration fund under this act shall be appropriated by the

legislature to the unemployment agency to pay the expenses of the

administration of this act.

     (2) The administration fund shall be credited with all money

appropriated to the fund by the legislature, all money received

from the United States or any agency of the United States for that

purpose, and all money received by this state for the fund. All

money in the administration fund that is received from the federal

government or any agency of the federal government or that is

appropriated by this state for the purposes of this act, except

money requisitioned from the account of this state in the

unemployment trust fund pursuant to a specific appropriation made

by the legislature in accordance with section 903(c)(2) of title IX

of the social security act, 42 USC 1103(c)(2), and with section

17(3)(f), shall be expended solely for the purposes and in the

amounts found necessary by the appropriate agency of the United

States and the legislature for the proper and efficient

administration of this act.

     (3) All money requisitioned from the account of this state in

the unemployment trust fund pursuant to a specific appropriation

made by the legislature in accordance with section 903(c)(2) of

title IX of the social security act, 42 USC 1103(c)(2), and with

section 17(3)(f), shall be deposited in the administration fund.

Any money that remains unexpended at the close of the 2-year period

beginning on the date of enactment of a specific appropriation

shall be immediately redeposited with the secretary of the treasury

of the United States to the credit of this state's account in the

unemployment trust fund; or any money that for any reason cannot be

expended or is not to be expended for the purpose for which

appropriated before the close of this 2-year period shall be

redeposited at the earliest practicable date.

     (4) If any money received after June 30, 1941, from the

appropriate agency of the United States under title III of the

social security act, 42 USC 501 to 504, or any unencumbered

balances in the administration fund (Michigan employment security

act) as of that date, or any money granted after that date to this

state under the Wagner-Peyser act, as defined in section 12, or any

money made available by this state or its political subdivisions

and matched by money granted to this state under the Wagner-Peyser

act, is found by the appropriate agency of the United States,

because of any action or contingency, to have been lost or been

expended for purposes other than, or in amounts in excess of, those

found necessary by that agency of the United States for the proper

administration of this act, the money shall be replaced by money

appropriated for that purpose from the general funds of this state

to the administration fund (Michigan employment security act) for

expenditure as provided in this act. Upon receipt of notice of such

a finding by the appropriate agency of the United States, the

unemployment agency shall promptly report the amount required for

replacement to the governor and the governor shall, at the earliest

opportunity, submit to the legislature a request for the

appropriation of that amount. This subsection does not relieve this

state of its obligation with respect to funds received prior to

July 1, 1941, under the provisions of 42 USC 501 to 504.

     (5) If any funds expended or disbursed by the unemployment

agency are found by the appropriate agency of the United States to

have been lost or expended for purposes other than, or in amounts

in excess of, those found necessary by that agency of the United

States for the proper administration of this act, and if these

funds are replaced as provided in subsection (4) by money

appropriated for that purpose from the general fund of this state,

then the director who approved the expenditure or disbursement of

those funds for those purposes or in those amounts, is liable to

this state in an amount equal to the sum of money appropriated to

replace those funds.

     (6) There is created in the department of treasury a separate

fund to be known as the contingent fund (Michigan employment

security act) into which shall be deposited all solvency taxes

collected under section 19a and all interest on contributions,

penalties, and damages collected under this act. All Except as

provided in subsection (7), all amounts in the contingent fund

(Michigan employment security act) and all earnings on those

amounts are continuously appropriated without regard to fiscal year

for the administration of the talent investment agency, as

established under Executive Reorganization Order No. 2014-6, MCL

125.1995, including, but not limited to, the development and

execution of workforce training programs, and for the payment of

interest on advances from the federal government to the

unemployment compensation fund under 42 USC 1321, to be expended

only if authorized by the unemployment agency. Money deposited from

the solvency taxes collected under section 19a shall not be used

for the administration of the unemployment agency, except for the

repayment of loans from the state treasury and interest on loans

made under section 19a(3). However, an authorization or expenditure

shall not be made as a substitution for a grant of federal funds or

for any portion of a grant that, in the absence of an

authorization, would be available to the unemployment agency.

Immediately upon receipt of administrative grants from the

appropriate agency of the United States to cover administrative

costs for which the unemployment agency has authorized and made

expenditures from the contingent fund, those grants shall be

transferred to the contingent fund to the extent necessary to

reimburse the contingent fund for the amount of those expenditures.

Amounts needed to refund interest, damages, and penalties

erroneously collected shall be withdrawn and expended for those

purposes from the contingent fund upon order of the unemployment

agency. Any amount authorized to be expended for administration

under this section may be transferred to the administration fund.

An amount not needed for the purpose for which authorized shall,

upon order of the unemployment agency, be returned to the

contingent fund. Amounts needed to refund erroneously collected

solvency taxes shall be withdrawn and expended for that purpose

upon order of the unemployment agency.

     (7) For the fiscal year ending September 30, 2017 only,

$10,000,000.00 of the money in the contingent fund created in

subsection (6) is transferred to and shall be deposited into the

general fund.