HB-4949, As Passed Senate, October 17, 2013

 

 

 

 

 

 

 

 

 

 

 

 

SENATE SUBSTITUTE FOR

 

HOUSE BILL NO. 4949

 

 

 

 

 

 

 

 

 

 

 

 

     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 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 household income, exclusive of

 

social welfare benefits, is at or below 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. A waiver granted under the conditions

 

described in this subdivision applies from the date the application

 

is filed.

 

     (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 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. 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, 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, 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 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 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) House Bill No. 4950.

 

     (b) House Bill No. 4951.

 

     (c) House Bill No. 4952.

 

     (d) House Bill No. 4953.

 

     (e) House Bill No. 4954.