September 4, 2013, Introduced by Rep. Foster and referred to the Committee on Commerce.
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending section 62 (MCL 421.62), as amended by 2011 PA 269.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 62. (a) If the unemployment agency determines that a
person has obtained benefits to which that person is not entitled,
it
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 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. 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. The unemployment agency shall issue a
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 6
years after the receipt of the improperly paid benefits unless the
unemployment agency filed a civil action in a court within the 3-
year or 6-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 or
6-year period. Except in a case of an intentional false statement,
misrepresentation, or concealment of material information, the
unemployment agency may 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, the waiver is prospective
and does not apply to restitution and interest payments already
made by the individual.
(b)
For benefit years beginning before October 1, 2000, if the
unemployment
agency determines that a person has intentionally made
a
false statement or misrepresentation or has concealed material
information
to obtain benefits, whether or not the person obtains
benefits
by or because of the intentional false statement,
misrepresentation,
or concealment of material information, the
person
shall, in addition to any other applicable interest and
penalties,
have all of his or her uncharged credit weeks with
respect
to the benefit year in which the act occurred canceled as
of
the date the unemployment agency receives notice of, or
initiates
investigation of, the possible false statement,
misrepresentation,
or concealment of material information,
whichever
date is earlier. Before receiving benefits in a benefit
year
established within 2 years after cancellation of uncharged
credit
weeks under this subsection, the individual, in addition to
making
the restitution of benefits established under subsection
(a),
may be liable for an additional amount as determined by the
unemployment
agency under this act, which may be paid by cash,
deduction
from benefits, or deduction from a 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). For
benefit years beginning on or after October 1, 2000, if the
unemployment agency determines that a person has intentionally made
a false statement or misrepresentation or has concealed material
information to obtain benefits, whether or not the person obtains
benefits by or because of the intentional false statement,
misrepresentation, or concealment of material information, the
person shall, in addition to any other applicable interest and
penalties, have his or her rights to benefits for the benefit year
in
which the act occurred canceled as of the date the unemployment
agency
receives notice of, or initiates investigation of, a
possible
false statement, misrepresentation, or concealment of
material
information, whichever date is earlier, claimant made the
false statement or misrepresentation or concealed material
information, and wages used to establish that benefit year shall
not be used to establish another benefit year. Before receiving
benefits in a benefit year established within 4 years after
cancellation of rights to benefits under this subsection, the
individual, 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. 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 be deposited
in the contingent fund.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 97th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No.____ (request no.
02824'13).
(b) Senate Bill No.____ or House Bill No.____ (request no.
02825'13).
(c) Senate Bill No.____ or House Bill No.____ (request no.
02826'13).
(d) Senate Bill No.____ or House Bill No.____ (request no.
03302'13).
(e) Senate Bill No.____ or House Bill No.____ (request no.
03440'13).