Bill Text: MI HB4954 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: Employment security; funds; unemployment compensation fund; allow crediting of certain payments. Amends sec. 26 of 1936 (Ex Sess) PA 1 (MCL 421.26). TIE BAR WITH: HB 4949'13, HB 4950'13, HB 4951'13, HB 4952'13, HB 4953'13
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2013-10-30 - Assigned Pa 145'13 With Immediate Effect [HB4954 Detail]
Download: Michigan-2013-HB4954-Engrossed.html
HB-4954, As Passed Senate, October 17, 2013
HOUSE BILL No. 4954
September 4, 2013, Introduced by Rep. Goike and referred to the Committee on Commerce.
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending section 26 (MCL 421.26), as amended by 2005 PA 16.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 26. (a) There is established as a special fund, separate
and apart from all public money or funds of this state, an
unemployment compensation fund, herein referred to as the fund,
which shall be administered by the commission exclusively for the
purposes of this act. The fund shall consist of (1) all
contributions and payments in lieu of contributions collected under
the provisions of this act as well as reimbursement payments by the
federal government for its portion of sharable extended benefits;
(2) interest earned upon any moneys in the fund; (3) any property
or securities acquired through the use of money belonging to the
fund; (4) all earnings of such property or securities; (5) amounts
transferred from the contingent fund pursuant to section 10; (6)
all money collected, including fines, civil penalties, and
interest,
under section 22b; and (7) amounts
credited to the fund
under section 54; and (8) any other money received by the
commission for unemployment compensation, except interest,
penalties, and damages collected under other provisions of this
act. All money in the fund shall be mingled and undivided.
(b) The commission shall designate a treasurer and custodian
of the fund who shall administer the fund in accordance with the
directions of the commission and shall issue his or her vouchers
upon it in accordance with the regulations as the commission
prescribes. The treasurer shall maintain within the fund 3 separate
accounts: (1) a clearing account, (2) an unemployment trust fund
account, and (3) a benefit account. All money payable to the fund,
upon receipt by the commission, shall be forwarded to the treasurer
who shall immediately deposit it in the clearing account. Refunds
payable pursuant to section 16 may be paid from the clearing
account upon vouchers issued by the treasurer under the direction
of the commission. After clearance of the vouchers, all other money
in the clearing account, except amounts needed for refunds and
judgments, shall be immediately deposited with the secretary of the
treasury of the United States of America to the credit of the
account of this state in the unemployment trust fund, established
and maintained pursuant to section 904 of the social security act,
42 USC 1104. The benefit account shall consist of all money
requisitioned from this state's account in the unemployment trust
fund. Except as otherwise provided in this act, money in the
clearing and benefit accounts may be deposited by the treasurer,
under the direction of the commission, in any depository designated
by the commission.
(c)(1) Except as provided in paragraph (2) of this subsection,
money shall be requisitioned from this state's account in the
unemployment trust fund solely for the payment of benefits and in
accordance with regulations prescribed by the commission. The
commission shall from time to time requisition from the
unemployment trust fund such amounts, not exceeding the amounts
standing to its account in that fund, as it deems necessary for the
payment of benefits for a reasonable future period. Upon receipt,
the treasurer shall deposit the requisitioned money in the benefit
account and shall issue his or her vouchers for the payment of
benefits solely from the benefit account. All vouchers issued by
the treasurer for the payment of benefits and refunds shall bear
the signature of the treasurer and the counter-signature of a
member of the commission or its duly authorized agent for that
purpose. Any balance of money requisitioned from the unemployment
trust fund which remains unclaimed or unpaid in the benefit account
after the expiration of the period for which the sums were
requisitioned shall either be deducted from estimates for, and may
be utilized for the payment of, benefits during succeeding periods,
or, in the discretion of the commission, shall be redeposited with
the secretary of the treasury of the United States of America, to
the credit of this state's account in the unemployment trust fund,
as provided in subsection (b).
(2) The commission may requisition from this state's account
in the unemployment trust fund such amounts, or portions thereof,
as have been specifically appropriated by the legislature for the
administration of this act in accordance with the provisions of
section 903(c)(2) of the federal social security act, 42 USC
1103(c)(2). Upon receipt, the treasurer shall deposit that money in
the administration fund, but it shall remain a part of the
unemployment compensation fund until expended.
(d) The provisions of subsections (a), (b), and (c), to the
extent that they relate to the unemployment trust fund, shall be
operative only while the unemployment trust fund continues to exist
and until the secretary of the treasury of the United States of
America continues to maintain for this state a separate account of
all funds deposited in it by this state for benefit purposes,
together with this state's proportionate share of the earnings of
the unemployment trust fund, from which no other state is permitted
to make withdrawals. If the unemployment trust fund ceases to
exist, or the separate account is no longer maintained, all money,
properties, or securities therein, belonging to the unemployment
compensation fund of this state, shall be transferred to the
treasurer of the unemployment compensation fund, who shall hold,
invest, transfer, sell, deposit, and release the money, properties,
or securities in a manner approved by the commission, in bonds or
other interest bearing obligations of the United States of America
or of this state. The investments shall be so made that all the
assets of the fund are readily convertible into cash when needed
for the payment of benefits. The treasurer shall dispose of
securities or other properties belonging to the unemployment
compensation fund only under the direction of the commission.
(e) The unemployment compensation fund shall be audited by the
auditor general at the times requested by the state administrative
board.
(f) The commission may designate an assistant treasurer who,
in the absence of the treasurer and custodian as designated by the
commission under the authority conferred upon it under subsection
(b), may perform the duties conferred upon the treasurer and
custodian under this act.
(g) The commission may enter into agreements that are
necessary to secure any advance or grant of funds by the secretary
of the treasury of the United States in accordance with the
authority extended under section 1201 of the social security act,
42 USC 1321, or under any other act of congress extending that
authority.
Any amount transferred to the unemployment trust fund by the
secretary of the treasury of the United States under the terms of
any agreement entered into in accordance with the authority
extended in this subsection shall be repaid to the secretary of the
treasury of the United States for the unemployment trust fund.
Whenever all interest bearing advances from the federal
government have been repaid, if employers will be able to avoid,
under the provisions of section 3302(g) of the federal unemployment
tax act, 26 USC 3302(g), direct payment of the additional federal
unemployment tax imposed under section 3302(c)(2) of the federal
unemployment tax act, 26 USC 3302(c)(2), funds sufficient to
qualify for avoidance shall be transferred from the account of this
state in the federal unemployment trust fund to the federal
unemployment account in that trust fund, unless precluded by
federal law.
Any interest required to be paid on advances under title XII
of the social security act, 42 USC 1321 to 1324, shall be paid in a
timely manner and shall not be paid, directly or indirectly by an
equivalent reduction in contributions or payments in lieu of
contributions, from amounts in this state's account in the federal
unemployment trust 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. 4950(request no.
02824'13).
(b) Senate Bill No. ____ or House Bill No. 4951(request no.
02825'13).
(c) Senate Bill No. ____ or House Bill No. 4952(request no.
02826'13).
(d) Senate Bill No. ____ or House Bill No. 4949(request no.
02987'13).
(e) Senate Bill No. ____ or House Bill No. 4953(request no.
03440'13).
