HOUSE BILL NO. 5294

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

"Michigan employment security act,"

by amending sections 2 and 32b (MCL 421.2 and 421.32b), section 2 as amended by 2011 PA 268 and section 32b as amended by 2011 PA 269, and by adding section 32e.

the people of the state of michigan enact:

Sec. 2. (1) The legislature acting in the exercise of the police power of the this state declares that the public policy of the this state is as follows: Economic insecurity due to unemployment is a serious menace to the health, morals, and welfare of the people of this state. Involuntary unemployment is a subject of general interest and concern which that requires action by the legislature to prevent its spread and to lighten its burden, which so often falls with crushing force upon the unemployed worker and his or her family , to the detriment of the welfare of the people of this state. Social security requires protection against this hazard of our economic life. Employers should be encouraged to provide stable employment. The systematic accumulation of funds during periods of employment to provide benefits for periods of unemployment by the setting aside of unemployment reserves to be used for the benefit of persons individuals unemployed through no fault of their own, thus maintaining purchasing power and limiting the serious social consequences of relief assistance, is for the public good, and the general welfare of the people of this state.

(2) The unemployment agency shall use plain language in all of the following under this act, whether in a print, electronic, or other format:

(a) Correspondence and documents related to the taxes or reimbursing charges of employers and the benefits of individuals.

(b) References or citations to either of the following that are in a document or correspondence sent to or used by a claimant or employer:

(i) A policy the unemployment agency implements.

(ii) A rule the unemployment agency promulgates.

(3) (2) The legislature finds that from time to time high levels of unemployment have resulted in the exhaustion of the funds in this state's account of the unemployment trust fund, has have required advances or loans to the this state from the federal account of the unemployment trust fund, and has have caused the imposition of lawful penalty taxes and solvency taxes to repay those advances and the interest on those advances. The financing and payment of the outstanding principal amount heretofore or hereafter advanced or loaned to this state from the federal account of the unemployment trust fund and the interest on those loans, if any, the funding of unemployment compensation benefits, and the financing and funding of this state's account in the unemployment trust fund including, without limitation, the funding of sufficient fund balances in the unemployment trust fund, are an essential governmental function functions and public purpose purposes of this state. The legislature further finds that the issuance of bonds by the Michigan finance authority or other issuer to finance the foregoing payments and to avoid or reduce the imposition of penalty taxes and solvency taxes will further and facilitate an essential governmental function and public purpose of this state that will encourage the development of industry and commerce, foster economic growth, provide employment opportunities for the citizens and residents people of this state and further other economic development and activities in this state, and in general promote the public health and general welfare of the people of this state.

(4) As used in this section, "plain language" means language that meets all of the following requirements:

(a) Is clear and concise.

(b) Avoids complex vocabulary and contradictory statements.

(c) Is based on a fourth-grade reading level.

Sec. 32b. (1) The unemployment agency shall establish and provide access to a secure internet site to enable employers to determine if correspondence sent to the unemployment agency by the employer has been received.

(2) Within Not later than 10 days of after receiving a protest or appeal from an employer or employing unit, the unemployment agency shall post a statement confirming receipt of the protest or appeal from that employer or employing unit on the internet site required under subsection (1).

(3) A protest or appeal shall must be signed or verified in a manner prescribed by administrative rule and shall must be transmitted to the unemployment agency by mail , or facsimile , or other electronic method approved by the unemployment agency. If a party submits an unsigned or unverified protest or appeal, the unemployment agency shall notify the party of the defect that prevents the agency from accepting the protest or appeal.

(4) The unemployment agency shall include all of the following in each determination and redetermination the unemployment agency provides to a claimant or employer:

(a) A clear, concise, and factual reason for the determination or redetermination that includes particularized facts specific to the claimant's or employer's claim.

(b) A summary of the claimant's or employer's right to appeal determinations and redeterminations, including the length of time the claimant or employer has to file an appeal, as provided for in section 32a.

(c) A summary of the claimant's or employer's right to request a reconsideration of a determination or redetermination not more than 1 year after the mailing date of the determination or redetermination as provided for in section 32a.

(d) A summary list of all of the determinations and redeterminations related to the claimant's or employer's claim. The list must include all of the following information for each determination and redetermination:

(i) The outcome.

(ii) The date of issuance.

(iii) The date by which the claimant or employer must file an appeal under section 32a.

(iv) The date by which the claimant must request a reconsideration of the determination or redetermination under section 32a.

(5) The unemployment agency shall consolidate all determinations related to an issue into 1 determination.

(6) The unemployment agency shall consolidate all redeterminations related to an issue into 1 redetermination.

Sec. 32e. Except as otherwise provided in section 32b(4), the unemployment agency shall include both of the following in the notification it provides to an employer or a claimant regarding a denial, modification, or cessation of benefits:

(a) A clear and concise statement of the reason for the denial, modification, or cessation. The statement must include both of the following:

(i) The particularized facts specific to the claimant's or employer's claim that support the denial, modification, or cessation.

(ii) The legal reason for the denial, modification, or cessation.

(b) If applicable, the appeal rights that the employer or claimant has with respect to the denial, modification, or cessation.