Bill Text: MI HB6314 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Employment security: other; conspiracy and fraud provisions; modify. Amends sec. 54b of 1936 (Ex Sess) PA 1 (MCL 421.54b).
Sponsorship: Partisan Bill (Republican 5)
Status: (Introduced) 2026-09-01 - Bill Electronically Reproduced 08/27/2026 [HB6314 Detail]
Download: Michigan-2025-HB6314-Introduced.html
HOUSE BILL NO. 6314
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending section 54b (MCL 421.54b), as amended by 1993 PA 276.
the people of the state of michigan enact:
Sec. 54b. (1) An employing unit or an officer or agent of an employing unit, a claimant for unemployment benefits, an employee of the commission, unemployment insurance agency, or a third party that has conspired knowingly, intentionally, or with reckless disregard for the legality of the conduct, participates in a conspiracy with 1 or more persons to commit an offense prohibited by this act or to commit an act otherwise permitted by this act in an illegal manner, shall be including conduct carried out through electronic, digital, automated, or technological means, or through the use of stolen, misappropriated, or unlawfully obtained personal identifying information, or by knowingly facilitating, enabling, directing, or materially assisting such conduct, is guilty of conspiracy punishable by 1 or more of the following:
(a) If the commission unemployment insurance agency determines that an individual conspired to commit an illegal act under this act, the commission unemployment insurance agency may recover the amount of money so obtained or withheld from payment or that was attempted to be obtained or withheld from payment as a result of the illegal act , and may also recover damages equal to 3 times that amount.
(b) The commission unemployment insurance agency may refer the matter to the prosecuting attorney of the county in which the alleged violation occurred for prosecution. If the commission unemployment insurance agency has not made its own determination under subdivision (a), the penalty sought by the prosecutor shall must include the amount described in subdivision (a) and shall also include 1 or more of the following penalties:
(i) If the amount obtained or withheld from payment as a result of the conspiracy is $25,000.00 or less, then 1 of the following:
(A) Imprisonment for not more than 2 years.
(B) The performance of community service of not more than 2 years but not to exceed 4,160 hours.
(C) A combination of sub-subparagraphs (A) and (B) that does not exceed 2 years.
(ii) If the amount obtained or withheld from payment as a result of the conspiracy is more than $25,000.00, then 1 of the following:
(A) Imprisonment for not more than 5 years.
(B) The performance of community service of not more than 5 years but not to exceed 10,400 hours.
(C) A combination of sub-subparagraphs (A) and (B) that does not exceed 5 years.
(iii) If a the conspiracy to obtain or withhold an amount from payment is attempted but does not result in a loss to the commission, unemployment insurance agency, then both a fine equal to 3 times the amount involved in the conspiracy, but not less than $1,000.00, and 1 of the following:
(A) Imprisonment for not more than 2 years.
(B) The performance of community service for not more than 2 years but not to exceed 4,160 hours.
(C) A combination of sub-subparagraphs (A) and (B) that does not exceed 2 years.
(2) This section shall apply even applies regardless of if the amount obtained or withheld from payment has been is repaid, partially repaid, reported, corrected, or reported and paid disclosed by an individual involved in a conspiracy before or after the unemployment insurance agency detects the conspiracy.
(3) A person may be found to be in violation of this section regardless of if a conspiracy results in payment to the person if the person knowingly attempts, facilitates, aids, abets, or materially assists a conspiracy prohibited under this act.
(5) This section as amended by the amendatory act that added this sentence applies to conduct that began on or after the effective date of that amendatory act.
(6) (4) The penalties provided in this section shall be are in addition to any penalty provided in this act for a late filing.
(7) � (5) If a determination is made that an individual has violated this section, the individual is subject to the penalty provisions of this section and, where applicable, the requirements of under section 62.
(8) (6) The amount recovered by the commission pursuant to unemployment insurance agency under subsection (1) shall must be credited first to the unemployment compensation fund and thereafter amounts recovered that are in excess of the amounts obtained or withheld as a result of the conspiracy shall must be credited to the penalty and interest account of the contingent fund.
(7) This section shall take effect April 1, 1992.
