Bill Text: MI HB4260 | 2011-2012 | 96th Legislature | Introduced

---

Bill Title: Employment security; benefits; look-back period for extended benefits; revise. Amends sec. 64 of 1936 (Ex Sess) PA 1 (MCL 421.64).

Spectrum: Partisan Bill (Democrat 37-0)

Status: (Introduced - Dead) 2011-02-17 - Printed Bill Filed 02/17/2011 [HB4260 Detail]

Download: Michigan-2011-HB4260-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4260

February 16, 2011, Introduced by Reps. Byrum, Durhal, Brown, Stapleton, McCann, Smiley, Cavanagh, Ananich, Melton, Lane, Bledsoe, Switalski, Hobbs, Townsend, Hovey-Wright, Irwin, Bauer, Stallworth, Liss, Slavens, Darany, Rutledge, Talabi, Santana, Segal, Barnett, Womack, Constan, Lindberg, Nathan, Stanley, Lipton, Kandrevas, Howze, Olumba and Oakes and referred to the Committee on Commerce.

 

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

 

"Michigan employment security act,"

 

by amending section 64 (MCL 421.64), as amended by 2009 PA 19.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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.

 

     (c) The period is at least 13 consecutive weeks long, and does

 

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.

 

     (c) There is a Michigan "on" indicator for a week if 1 or both

 

of the following apply:

 

     (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 each week of unemployment beginning

 

after the effective date of the amendatory act that added this

 

sentence and ending the earlier of December 31, 2011 or the week

 

ending 4 weeks before the last week 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 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 any or all 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,

 

April 13, 2009 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 1

 

or more 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 April 13, 2009 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.

 

     (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).

 

     (c) As used in this subsection, "suitable work" means, with

 

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.