HB-5171, As Passed House, November 8, 2017
October 24, 2017, Introduced by Rep. Phelps and referred to the Committee on Oversight.
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending section 62 (MCL 421.62), as amended by 2016 PA 522.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
62. (a) If the unemployment agency determines that a
person
an individual has obtained benefits to which that person the
individual is not entitled, or a subsequent determination by the
agency or a decision of an appellate authority reverses a prior
qualification for benefits, the agency may recover a sum equal to
the amount received plus interest pursuant to section 15(a) by 1 or
more of the following methods: deduction from benefits or wages
payable to the individual, payment by the individual in cash, or
deduction from a tax refund payable to the individual as provided
under section 30a of 1941 PA 122, MCL 205.30a. Deduction from
benefits or wages payable to the individual is limited to not more
than 50% of each payment due the claimant. The unemployment agency
shall issue a determination requiring restitution within 3 years
after the date of finality of a determination, redetermination, or
decision reversing a previous finding of benefit entitlement.
Except in the case of benefits improperly paid because of suspected
identity fraud, the unemployment agency shall not initiate
administrative or court action to recover improperly paid benefits
from an individual more than 3 years after the date that the last
determination, redetermination, or decision establishing
restitution is final. Except in the case of benefits improperly
paid because of suspected identity fraud, the unemployment agency
shall issue a restitution determination on an issue within 3 years
from the date the claimant first received benefits in the benefit
year in which the issue arose, or in the case of an issue of
intentional false statement, misrepresentation, or concealment of
material information in violation of section 54(a) or (b) or
sections 54a to 54c, within 3 years after the receipt of the
improperly paid benefits unless the unemployment agency filed a
civil action in a court within the 3-year period; the individual
made an intentional false statement, misrepresentation, or
concealment of material information to obtain the benefits; or the
unemployment agency issued a determination requiring restitution
within the 3-year period. The time limits in this section do not
prohibit the unemployment agency from pursuing collection methods
to recover the amounts found to have been improperly paid. Except
in a case of an intentional false statement, misrepresentation, or
concealment of material information, the unemployment agency shall
waive
recovery of an improperly paid benefit if the payment was not
the
fault of the individual and if
repayment would be contrary to
equity and good conscience and shall waive any interest. If the
agency or an appellate authority waives collection of restitution
and interest, except as provided in subdivision (ii), the waiver is
prospective and does not apply to restitution and interest payments
already made by the individual. As used in this subsection,
"contrary to equity and good conscience" means any of the
following:
(i) The claimant provided incorrect wage information without
the intent to misrepresent, and the employer provided either no
wage information upon request or provided inaccurate wage
information that resulted in the overpayment.
(ii) The claimant's disposable average net household income
and
household cash assets, exclusive of
social welfare benefits, is
were, during the 6 months immediately preceding the date of the
application for waiver, at or below 150% of the annual update of
the poverty guidelines most recently published in the Federal
Register by the United States Department of Health and Human
Services under the authority of 42 USC 9902(2), and the claimant
has applied for a waiver under this subsection. The unemployment
agency shall not consider a new application for a waiver from a
claimant within 6 months after receiving an application for a
waiver from the claimant. A waiver granted under the conditions
described in this subdivision applies from the date the application
is filed. If the waiver is granted, the unemployment agency shall
promptly refund any restitution or interest payments made by the
individual after the date of the application for waiver. As used in
this subdivision:
(A) "Cash assets" means cash on hand and funds in a checking
or savings account.
(B) "Dependent" means that term as defined in section
27(b)(4).
(C) "Household" means a claimant and the claimant's
dependents.
(iii) The improper payments resulted from an administrative or
clerical error by the unemployment agency. A requirement to repay
benefits as the result of a change in judgment at any level of
administrative adjudication or court decision concerning the facts
or application of law to a claim adjudication is not an
administrative or clerical error for purposes of this subdivision.
(b)
For benefit years beginning on or after October 1, 2000,
if
If the unemployment agency determines that a person claimant has
intentionally made a false statement or misrepresentation or has
concealed material information to obtain benefits, whether or not
the
person claimant obtains benefits by or because of the
intentional false statement, misrepresentation, or concealment of
material
information, the person unemployment
agency shall, in
addition
to any other applicable interest and penalties, have
cancel his or her rights to benefits for the benefit year in which
the
act occurred canceled as of the date the claimant made the
false statement or misrepresentation or concealed material
information, and shall not use wages used to establish that benefit
year
shall not be used to establish another benefit year. A
chargeable employer may protest a claim filed after October 1, 2014
to establish a successive benefit year under section 46(c), if
there was a determination by the unemployment agency or decision of
a court or administrative tribunal finding that the claimant made a
false statement, made a misrepresentation, or concealed material
information related to his or her report of earnings for a
preceding benefit year claim. If a protest is made, the
unemployment agency shall not use any unreported earnings from the
preceding benefit year that were falsely stated, misrepresented, or
concealed
shall not be used to establish a benefit year for a
successive claim. Before receiving benefits in a benefit year
established within 4 years after cancellation of rights to benefits
under
this subsection, the individual, claimant, in addition to
making the restitution of benefits established under subsection
(a), may be liable for an additional amount as otherwise determined
by the unemployment agency under this act, which may be paid by
cash, deduction from benefits, or deduction from a tax refund. The
individual
claimant is liable for any fee the federal government
imposes with respect to instituting a deduction from a federal tax
refund. Restitution resulting from the intentional false statement,
misrepresentation, or concealment of material information is not
subject to the 50% limitation provided in subsection (a).
(c) Any determination made by the unemployment agency under
this section is final unless an application for a redetermination
is filed in accordance with section 32a.
(d) The 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). The
unemployment agency may conduct an amnesty program for a designated
period under which penalties and interest assessed against an
individual owing restitution for improperly paid benefits may be
waived if the individual pays the full amount of restitution owing
within the period specified by the agency.
(e)
Interest recovered under this section shall must be
deposited in the contingent fund.
(f)
An The unemployment agency shall not make a determination
that a claimant made an intentional false statement,
misrepresentation, or concealment of material information that is
subject
to sanctions under this section shall not be based solely
on a computer-identified discrepancy in information supplied by the
claimant or employer. An unemployment agency employee or agent must
examine the facts and independently determine that the claimant or
the employer is responsible for a willful or intentional violation
before the agency makes a determination under this section.
(g) By January 31 each year, beginning in 2019, the
unemployment agency shall provide a written report regarding
waivers under subsection (a)(ii) to the chairpersons of the
standing committees and the appropriations subcommittees of the
house of representatives and senate having jurisdiction over
legislation pertaining to employment security. The report must
include all of the following information from the immediately
preceding calendar year in a form that does not identify an
individual, claimant, or employer:
(i) The procedures relating to waivers that the unemployment
agency used or adopted.
(ii) The number of applications for a waiver the unemployment
agency received.
(iii) The number of individuals who submitted an application
for a waiver.
(iv) The number of waivers that were granted by each of the
following methods:
(A) An unemployment agency determination.
(B) An unemployment agency redetermination.
(C) An administrative law judge order.
(D) A Michigan compensation appellate commission order.
(E) A court order.
(v) The number of waivers that were denied, tabulated by the
reason for the denial, by each of the following methods:
(A) An unemployment agency determination.
(B) An unemployment agency redetermination.
(C) An administrative law judge order.
(D) A Michigan compensation appellate commission order.
(E) A court order.
(vi) The total amount of restitution waived.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 99th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 5169 (request no.
03872'17).
(b) Senate Bill No.____ or House Bill No. 5167 (request no.
03873'17).
(c) Senate Bill No.____ or House Bill No. 5172 (request no.
03874'17).
(d) Senate Bill No.____ or House Bill No. 5170 (request no.
03876'17).
(e) Senate Bill No.____ or House Bill No. 5165 (request no.
03877'17).
(f) Senate Bill No.____ or House Bill No. 5168 (request no.
03878'17).
(g) Senate Bill No.____ or House Bill No. 5166 (request no.
03879'17).