Bill Text: MI HB5167 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Employment security; other; claimants and employers accused of fraud; allow access to advocacy assistance services. Amends sec. 5a of 1936 (Ex Sess) PA 1 (MCL 421.5a). TIE BAR WITH: HB 5165'17, HB 5166'17, HB 5168'17, HB 5169'17, HB 5170'17, HB 5171'17, HB 5172'17
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2017-12-28 - Assigned Pa 227'17 With Immediate Effect [HB5167 Detail]
Download: Michigan-2017-HB5167-Engrossed.html
HB-5167, As Passed Senate, December 13, 2017
HOUSE BILL No. 5167
October 24, 2017, Introduced by Rep. Byrd and referred to the Committee on Oversight.
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending section 5a (MCL 421.5a), as amended by 1993 PA 311.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5a. (1) For calendar years beginning January 1, 1994 and
ending
December 31, 1998, the commission unemployment agency shall
develop and implement a program to provide, upon request, claimant
and employer advocacy assistance or consultation. The purpose of
the
program shall be is to provide information, consultation, and
representation to claimants and employers relating to the referee
or board of review appeal levels, or both.
(2)
The program shall must be funded from the penalty and
interest
account in the contingent fund. If the advocacy program
does not operate or the legislature fails to approve a yearly
appropriation
for the advocacy program in an amount at least equal
to the maximum yearly expenditure for the program as provided in
this subsection, then the provision of section 19(a)(5) reducing
the maximum nonchargeable benefits component from 1% to 1/2 of 1%
shall
is not be effective for the a tax
year for which the
appropriation
is not made or in which the advocacy program does not
operate. For fiscal years beginning on and after October 1, 1994,
the maximum amount of the expenditure for the program each year
shall
must not exceed $1,500,000.00.
(3)
The appropriations shall must
be used to finance all costs
connected
with the program. Not Costs
related to the representation
of claimants must not exceed 60% of the maximum expenditure allowed
in
each fiscal year, shall be used for costs related to
representation
of claimants and costs related to the representation
of
employers must not to exceed 40%
of the maximum expenditure
allowed
in each fiscal year. shall be used for costs related to
representation
of employers.
(4)
An Before an individual who desires to provide provides
advocacy
assistance services shall under
this section, the
individual
must apply to the commission unemployment agency for
approval.
The commission unemployment
agency shall develop
standards for individuals providing advocacy assistance services
including standards relating to knowledge of this act and the
practices and procedures at the referee and board of review appeal
levels.
Advocacy assistance services An
individual who is not an
attorney
may be provided by individuals other
than attorneys.
provide
advocacy assistance services. The commission
unemployment
agency shall develop a schedule for payment of individuals
providing
advocacy assistance services. Individuals providing
advocacy
assistance services shall not be active commission Active
unemployment agency or state employees shall not provide advocacy
assistance
services. The only active state or commission
unemployment agency employees involved in the program shall be
those
supervising or coordinating the program. but who shall not
provide
direct advocacy assistance services.
(5)
The commission unemployment
agency may include in the
program standards regarding the provision of advocacy assistance
services in precedent setting cases, multiclaimant cases, cases
without merit, or regarding other cases or factors as determined by
the
commission.unemployment
agency. However, to the extent that
funding is available from the appropriation under subsection (2),
the unemployment agency shall not withhold advocacy assistance
services in cases involving fraud under section 54. If the
unemployment agency makes a final determination or final
redetermination or an administrative law judge, the Michigan
compensation appellate commission, or a court makes a final order
that an employer or claimant who received advocacy assistant
services committed fraud under section 54, the unemployment agency
shall make an effort to recover from the employer or claimant,
respectively, an amount equal to the representation fees associated
with the advocacy assistance services provided to the employer or
claimant, respectively.
(6)
Individuals who are approved by the commission
unemployment agency to provide advocacy assistance services shall
enter
into a contract with the commission unemployment agency that
states that the payments made pursuant to the schedule established
by
the commission unemployment
agency shall be are payment
in full
for all services rendered and expenses incurred and that the
claimant or employer who has received the benefit of the services
shall
will not be billed for or be and is not liable for the cost
of the services or representation provided. An individual approved
by
the commission unemployment
agency to provide advocacy
assistance
services shall only receive accept
only the fee approved
by
the commission unemployment
agency for these the services
and
shall
not receive accept any other fee for these the services
from
the claimant or the employer.
(7)
If either a claimant or an employer receives advocacy
assistance services beyond an initial consultation, the other party
in
the case shall must be immediately notified. of
that fact. The
commission
unemployment agency shall include in the program
provisions to determine the method and the timeliness by which
immediate
notice shall must be provided. to the other party. The
commission
unemployment agency shall not approve the same
individual to provide advocacy assistance services for both
claimants
and employers. The commission unemployment
agency shall
clearly designate each individual approved to provide services
pursuant
to under this section as representing either claimants or
employers.
An individual approved by the commission unemployment
agency
to provide advocacy assistance services
shall is not be
entitled
to payment under this section for representing his or her
the
individual's own personal interests. No
An active state
employee shall not represent a claimant or an employer under this
program at the referee or board of review appeal levels. However,
this
subsection shall does not be construed to prevent prohibit an
employee
of the commission unemployment
agency from participating
in
a case in which the commission unemployment
agency is an
interested
party or if the employee is from
representing the
commission's
unemployment agency's interest when acting as an
administrator for a federal program as required by federal law.
(8)
The commission unemployment
agency shall make an annual
report
to the legislature on the operation of the advocacy
assistance
program. The first report under
this subsection shall be
is due within 60 days after the first anniversary date of the
beginning
of the program. Each report under this subsection shall
must
include, but is not
be limited to, the following for the
previous 12-month period:
(a) Number and type of claimants served.
(b) Number and type of employers served.
(c) Costs to the program of the claimants served.
(d) Costs to the program of the employers served.
(e) An analysis of the impact of the services provided on the
appeal system provided by this act.
Enacting section 1. This amendatory act takes effect July 1,
2018.
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. 5172 (request no.
03874'17).
(c) Senate Bill No.____ or House Bill No. 5170 (request no.
03876'17).
(d) Senate Bill No.____ or House Bill No. 5165 (request no.
03877'17).
(e) Senate Bill No.____ or House Bill No. 5168 (request no.
03878'17).
(f) Senate Bill No.____ or House Bill No. 5166 (request no.
03879'17).
(g) Senate Bill No.____ or House Bill No. 5171 (request no.
03880'17).
