SENATE BILL No. 444

 

 

April 21, 2009, Introduced by Senators CHERRY, PRUSI, WHITMER, OLSHOVE, BARCIA, GLEASON, BASHAM, JACOBS, SWITALSKI, CLARK-COLEMAN, ANDERSON, THOMAS, BRATER, SCOTT, CLARKE and HUNTER and referred to the Committee on Commerce and Tourism.

 

 

 

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

 

"Michigan employment security act,"

 

by amending sections 27 and 28 (MCL 421.27 and 421.28), section 27

 

as amended by 2002 PA 192 and section 28 as amended by 1994 PA 422.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 27. (a)(1) When a determination, redetermination, or

 

decision is made that benefits are due an unemployed individual,

 

the benefits shall become payable from the fund and continue to be

 

payable to the unemployed individual, subject to the limitations

 

imposed by the individual's monetary entitlement, if the individual

 

continues to be unemployed and to file claims for benefits, until

 

the determination, redetermination, or decision is reversed, a

 

determination, redetermination, or decision on a new issue holding


 

the individual disqualified or ineligible is made, or, for benefit

 

years beginning before the conversion date prescribed in section 75

 

October 1, 2000, a new separation issue arises resulting from

 

subsequent work.

 

     (2) Benefits shall be paid in person or by mail through

 

employment offices in accordance with rules promulgated by the

 

commission.

 

     (b)(1) Subject to subsection (f), the weekly benefit rate for

 

an individual, with respect to benefit years beginning before the

 

conversion date prescribed in section 75, shall be October 1, 2000,

 

is 67% of the individual's average after tax weekly wage, except

 

that the individual's maximum weekly benefit rate shall not exceed

 

$300.00. However, with respect to benefit years beginning after the

 

conversion date as prescribed in section 75 on or after October 1,

 

2000, the individual's weekly benefit rate shall be is 4.1% of the

 

individual's wages paid in the calendar quarter of the base period

 

in which the individual was paid the highest total wages, plus

 

$6.00 $20.00 for each dependent as defined in subdivision (3) (4),

 

up to a maximum of 5 dependents, claimed by the individual at the

 

time the individual files a new claim for benefits, except that the

 

individual's maximum weekly benefit rate shall not exceed $300.00

 

before the effective date of the amendatory act that added section

 

13l April 26, 2002 and $362.00 for claims filed on and after the

 

effective date of the amendatory act that added section 13l April

 

26, 2002. The weekly benefit rate for an individual claiming

 

benefits on and or after the effective date of the amendatory act

 

that added section 13l April 26, 2002 shall be recalculated subject


 

to the $362.00 maximum weekly benefit rate. The unemployment agency

 

shall establish the procedures necessary to verify the number of

 

dependents claimed. If a person fraudulently claims a dependent,

 

that person is subject to the penalties set forth in sections 54

 

and 54c. With respect to For benefit years beginning on or after

 

October 2, 1983, the weekly benefit rate shall be adjusted to the

 

next lower multiple of $1.00.

 

     (2) For benefit years beginning before the conversion date

 

prescribed in section 75 October 1, 2000, the state average weekly

 

wage for a calendar year shall be computed on the basis of the 12

 

months ending the June 30 immediately preceding that calendar year.

 

The commission shall prepare a table of weekly benefit rates based

 

on an "average after tax weekly wage" calculated by subtracting,

 

from an individual's average weekly wage as determined in

 

accordance with section 51, a reasonable approximation of the

 

weekly amount required to be withheld by the employer from the

 

remuneration of the individual based on dependents and exemptions

 

for income taxes under chapter 24 of subtitle C of the internal

 

revenue code of 1986, 26 U.S.C. USC 3401 to 3406, and under section

 

351 of the income tax act of 1967, 1967 PA 281, MCL 206.351, and

 

for old age and survivor's disability insurance taxes under the

 

federal insurance contributions act, chapter 21 of subtitle C of

 

the internal revenue code of 1986, 26 U.S.C. USC 3101 to 3128. For

 

purposes of applying the table to an individual's claim, a

 

dependent shall be as defined in subdivision (3). The table

 

applicable to an individual's claim shall be the table reflecting

 

the number of dependents claimed by the individual under


 

subdivision (3). The commission shall adjust the tables based on

 

changes in withholding schedules published by the United States

 

department of treasury, internal revenue service, and by the

 

department of treasury. The number of dependents allowed shall be

 

determined with respect to each week of unemployment for which an

 

individual is claiming benefits.

 

     (3) For benefit years beginning before the conversion date

 

prescribed in section 75 October 1, 2000, a dependent means any of

 

the following persons who is receiving and for at least 90

 

consecutive days immediately preceding the week for which benefits

 

are claimed, or, in the case of a dependent husband, wife, or

 

child, for the duration of the marital or parental relationship, if

 

the relationship has existed less than 90 days, has received more

 

than half the cost of his or her support from the individual

 

claiming benefits:

 

     (a) A child, including stepchild, adopted child, or grandchild

 

of the individual who is under 18 years of age, or 18 years of age

 

or over if, because of physical or mental infirmity, the child is

 

unable to engage in a gainful occupation, or is a full-time student

 

as defined by the particular educational institution, at a high

 

school, vocational school, community or junior college, or college

 

or university and has not attained the age of 22.

 

     (b) The husband or wife of the individual.

 

     (c) The legal father or mother of the individual if that

 

parent is either more than 65 years of age or is permanently

 

disabled from engaging in a gainful occupation.

 

     (d) A brother or sister of the individual if the brother or


 

sister is orphaned or the living parents are dependent parents of

 

an individual, and the brother or sister is under 18 years of age,

 

or 18 years of age or over if, because of physical or mental

 

infirmity, the brother or sister is unable to engage in a gainful

 

occupation, or is a full-time student as defined by the particular

 

educational institution, at a high school, vocational school,

 

community or junior college, or college or university and is less

 

than 22 years of age.

 

     (4) For benefit years beginning after the conversion date

 

prescribed in section 75 on or after October 1, 2000, a dependent

 

means any of the following persons who received for at least 90

 

consecutive days immediately preceding the first week of the

 

benefit year or, in the case of a dependent husband, wife, or

 

child, for the duration of the marital or parental relationship if

 

the relationship existed less than 90 days before the beginning of

 

the benefit year, has received more than 1/2 the cost of his or her

 

support from the individual claiming the benefits:

 

     (a) A child, including stepchild, adopted child, or grandchild

 

of the individual who is under 18 years of age, or 18 years of age

 

and over if, because of physical or mental infirmity, the child is

 

unable to engage in a gainful occupation, or is a full-time student

 

as defined by the particular educational institution, at a high

 

school, vocational school, community or junior college, or college

 

or university and has not attained the age of 22.

 

     (b) The husband or wife of the individual.

 

     (c) The legal father or mother of the individual if that

 

parent is either more than 65 years of age or is permanently


 

disabled from engaging in a gainful occupation.

 

     (d) A brother or sister of the individual if the brother or

 

sister is orphaned or the living parents are dependent parents of

 

an individual, and the brother or sister is under 18 years of age,

 

or 18 years of age and over if, because of physical or mental

 

infirmity, the brother or sister is unable to engage in a gainful

 

occupation, or is a full-time student as defined by the particular

 

educational institution, at a high school, vocational school,

 

community or junior college, or college or university and is less

 

than 22 years of age.

 

     (5) For benefit years beginning before the conversion date

 

prescribed in section 75 October 1, 2000, dependency status of a

 

dependent, child or otherwise, once established or fixed in favor

 

of an individual continues during the individual's benefit year

 

until terminated. Dependency status of a dependent terminates at

 

the end of the week in which the dependent ceases to be an

 

individual described in subdivision (3)(a), (b), (c), or (d) (3)

 

because of age, death, or divorce. For benefit years beginning

 

after the conversion date prescribed in section 75 on or after

 

October 1, 2000, the number of dependents established for an

 

individual at the beginning of the benefit year shall remain in

 

effect during the entire benefit year.

 

     (6) For benefit years beginning before the conversion date

 

prescribed in section 75 October 1, 2000, failure on the part of an

 

individual, due to misinformation or lack of information, to

 

furnish all information material for determination of the number of

 

the individual's dependents when the individual files a claim for


 

benefits with respect to a week shall be considered is good cause

 

for the issuance of to issue a redetermination as to the amount of

 

benefits based on the number of the individual's dependents as of

 

the beginning date of that week. Dependency status of a dependent,

 

child or otherwise, once established or fixed in favor of a person

 

is not transferable to or usable by another person with respect to

 

the same week.

 

     For benefit years beginning after the conversion date as

 

prescribed in section 75 on or after October 1, 2000, failure on

 

the part of an individual, due to misinformation or lack of

 

information, to furnish all information material for determination

 

of the number of the individual's dependents shall be considered

 

good cause for the issuance of to issue a redetermination as to the

 

amount of benefits based on the number of the individual's

 

dependents as of the beginning of the benefit year.

 

     (c) Subject to subsection (f), all of the following apply to

 

eligible individuals:

 

     (1) Each eligible individual shall be paid a weekly benefit

 

rate with respect to the week for which the individual earns or

 

receives no remuneration. Notwithstanding the definition of week in

 

section 50, if within 2 consecutive weeks in which an individual

 

was not unemployed within the meaning of section 48 there was a

 

period of 7 or more consecutive days for which the individual did

 

not earn or receive remuneration, that period shall be considered a

 

week for benefit purposes under this act if a claim for benefits

 

for that period is filed not later than 30 days after the end of

 

the period.


 

     (2) Each eligible individual shall have his or her weekly

 

benefit rate reduced with respect to each week in which the

 

individual earns or receives remuneration at the rate of 50 cents

 

for each whole $1.00 of remuneration earned or received during that

 

week.

 

     (3) An individual who receives or earns partial remuneration

 

may not receive a total of benefits and earnings that exceeds 1-1/2

 

times his or her weekly benefit amount. For each dollar of total

 

benefits and earnings that exceeds 1-1/2 times the individual's

 

weekly benefit amount, benefits shall be reduced by $1.00.

 

     (4) If the reduction in a claimant's benefit rate for a week

 

in accordance with subparagraph subdivision (2) or (3) results in a

 

benefit rate greater than zero for that week, the claimant's

 

balance of weeks of benefit payments will shall be reduced by 1

 

week.

 

     (5) All remuneration for work performed during a shift that

 

terminates on 1 day but that began on the preceding day shall be

 

considered to have been earned by the eligible individual on the

 

preceding day.

 

     (d) For benefit years beginning before the conversion date

 

prescribed in section 75 October 1, 2000, and subject to subsection

 

(f) and this subsection, the amount of benefits to which an

 

individual who is otherwise eligible is entitled during a benefit

 

year from an employer with respect to employment during the base

 

period is the amount obtained by multiplying the weekly benefit

 

rate with respect to that employment by 3 of the number of credit

 

weeks earned in the employment. For the purpose of this subsection


 

and section 20(c), if the resultant product is not an even multiple

 

of 1/2 the weekly benefit rate, the product shall be raised to an

 

amount equal to the next higher multiple of 1/2 the weekly benefit

 

rate, and, for an individual who was employed by only 1 employer in

 

the individual's base period and earned 34 credit weeks with that

 

employer, the product shall be raised to the next higher multiple

 

of the weekly benefit rate. The maximum amount of benefits payable

 

to an individual within a benefit year, with respect to employment

 

by an employer, shall not exceed 26 times the weekly benefit rate

 

with respect to that employment. The maximum amount of benefits

 

payable to an individual within a benefit year shall not exceed the

 

amount to which the individual would be entitled for 26 weeks of

 

unemployment in which remuneration was not earned or received. The

 

limitation of total benefits set forth in this subsection does not

 

apply to claimants declared eligible for training benefits in

 

accordance with subsection (g). For benefit years beginning after

 

the conversion date prescribed in section 75 on or after October 1,

 

2000, and subject to subsection (f) and this subsection, the

 

maximum benefit amount payable to an individual in a benefit year

 

for purposes of this section and section 20(c) 20(d) is the number

 

of weeks of benefits payable to an individual during the benefit

 

year, multiplied by the individual's weekly benefit rate. The

 

number of weeks of benefits payable to an individual shall be

 

calculated by taking 43% of the individual's base period wages and

 

dividing the result by the individual's weekly benefit rate. If the

 

quotient is not a whole or half number, the result shall be rounded

 

down to the nearest half number. However, not more than 26 weeks of


 

benefits or less than 14 weeks of benefits shall be payable to an

 

individual in a benefit year. The limitation of total benefits set

 

forth in this subsection shall does not apply to claimants declared

 

eligible for training benefits in accordance with subsection (g).

 

     (e) When a claimant dies or is judicially declared insane or

 

mentally incompetent, unemployment compensation benefits accrued

 

and payable to that person for weeks of unemployment before death,

 

insanity, or incompetency, but not paid, shall become due and

 

payable to the person who is the legal heir or guardian of the

 

claimant or to any other person found by the commission to be

 

equitably entitled to the benefits by reason of having incurred

 

expense in behalf of the claimant for the claimant's burial or

 

other necessary expenses.

 

     (f)(1) For benefit years beginning before the conversion date

 

prescribed in section 75 October 1, 2000, and notwithstanding any

 

inconsistent provisions of this act, the weekly benefit rate of

 

each individual who is receiving or will receive a "retirement

 

benefit", as defined in subdivision (4), shall be adjusted as

 

provided in subparagraphs (a), (b), and (c). However, an

 

individual's extended benefit account and an individual's weekly

 

extended benefit rate under section 64 shall be established without

 

reduction under this subsection unless subdivision (5) is in

 

effect. Except as otherwise provided in this subsection, all other

 

provisions of this act continue to apply in connection with the

 

benefit claims of those retired persons.

 

     (a) If and to the extent that unemployment benefits payable

 

under this act would be chargeable to an employer who has


 

contributed to the financing of a retirement plan under which the

 

claimant is receiving or will receive a retirement benefit yielding

 

a pro rata weekly amount equal to or larger than the claimant's

 

weekly benefit rate as otherwise established under this act, the

 

claimant shall not receive unemployment benefits that would be

 

chargeable to the employer under this act.

 

     (b) If and to the extent that unemployment benefits payable

 

under this act would be chargeable to an employer who has

 

contributed to the financing of a retirement plan under which the

 

claimant is receiving or will receive a retirement benefit yielding

 

a pro rata weekly amount less than the claimant's weekly benefit

 

rate as otherwise established under this act, then the weekly

 

benefit rate otherwise payable to the claimant and chargeable to

 

the employer under this act shall be reduced by an amount equal to

 

the pro rata weekly amount, adjusted to the next lower multiple of

 

$1.00, which the claimant is receiving or will receive as a

 

retirement benefit.

 

     (c) If the unemployment benefit payable under this act would

 

be chargeable to an employer who has not contributed to the

 

financing of a retirement plan under which the claimant is

 

receiving or will receive a retirement benefit, then the weekly

 

benefit rate of the claimant as otherwise established under this

 

act shall not be reduced due to receipt of a retirement benefit.

 

     (d) If the unemployment benefit payable under this act is

 

computed on the basis of multiemployer credit weeks and a portion

 

of the benefit is allocable under section 20(e) to an employer who

 

has contributed to the financing of a retirement plan under which


 

the claimant is receiving or will receive a retirement benefit, the

 

adjustments required by subparagraph (a) or (b) apply only to that

 

portion of the weekly benefit rate that would otherwise be

 

allocable and chargeable to the employer.

 

     (2) If an individual's weekly benefit rate under this act was

 

established before the period for which the individual first

 

receives a retirement benefit, any benefits received after a

 

retirement benefit becomes payable shall be determined in

 

accordance with the formula stated in this subsection.

 

     (3) When necessary to assure prompt payment of benefits, the

 

commission shall determine the pro rata weekly amount yielded by an

 

individual's retirement benefit based on the best information

 

currently available to it. In the absence of fraud, a determination

 

shall not be reconsidered unless it is established that the

 

individual's actual retirement benefit in fact differs from the

 

amount determined by $2.00 or more per week. The reconsideration

 

shall apply only to benefits as may be that are claimed after the

 

information on which the reconsideration is based was received by

 

the commission.

 

     (4)(a) As used in this subdivision subsection, "retirement

 

benefit" means a benefit, annuity, or pension of any type, or that

 

part thereof that is described in subparagraph (b), that is both:

 

     (i) Provided as an incident of employment under an established

 

retirement plan, policy, or agreement, including federal social

 

security if subdivision (5) is in effect.

 

     (ii) Payable to an individual because the individual has

 

qualified on the basis of attained age, length of service, or


 

disability, whether or not the individual retired or was retired

 

from employment. Amounts paid to individuals in the course of

 

liquidation of a private pension or retirement fund because of

 

termination of the business or of a plant or department of the

 

business of the employer involved shall not be considered to be are

 

not retirement benefits.

 

     (b) If a benefit, annuity, or pension as described in

 

subparagraph (a) is payable or paid to the individual under a plan

 

to which the individual has contributed:

 

     (i) Less than half of the cost of the benefit, then only half

 

of the benefit shall be treated as amount payable or paid is a

 

retirement benefit.

 

     (ii) Half or more of the cost of the benefit, then none of the

 

benefit shall be treated as amount payable or paid is a retirement

 

benefit.

 

     (c) The burden of establishing the extent of an individual's

 

contribution to the cost of his or her retirement benefit, annuity,

 

or pension plan for the purpose of subparagraph (b) is upon the

 

employer who has contributed to the plan. under which a benefit is

 

provided.

 

     (5) Notwithstanding any other provision of this subsection,

 

for any week that begins after March 31, 1980, and with respect to

 

which an individual is receiving a governmental or other pension

 

and claiming unemployment compensation, the weekly benefit amount

 

payable to the individual for those weeks shall be reduced, but not

 

below zero, by the entire prorated weekly amount of any

 

governmental or other pension, retirement or retired pay, annuity,


 

or any other similar payment that is based on any previous work of

 

the individual. This reduction shall be made only if it is required

 

as a condition for full tax credit against the tax imposed by the

 

federal unemployment tax act, chapter 23 of subtitle C of the

 

internal revenue code of 1986, 26 U.S.C. USC 3301 to 3311.

 

     (6) For benefit years beginning after the conversion date

 

prescribed in section 75 on or after October 1, 2000,

 

notwithstanding any inconsistent provisions of this act, the weekly

 

benefit rate of each individual who is receiving or will receive a

 

retirement benefit, as defined in subdivision (4), shall be

 

adjusted as provided in subparagraphs (a), (b), and (c) this

 

subdivision. However, an individual's extended benefit account and

 

an individual's weekly extended benefit rate under section 64 shall

 

be established without reduction under this subsection, unless

 

subdivision (5) is in effect. Except as otherwise provided in this

 

subsection, all the other provisions of this act shall continue to

 

be applicable in connection with the benefit claims of those

 

retired persons.

 

     (a) If any base period or chargeable employer has contributed

 

to the financing of a retirement plan under which the claimant is

 

receiving or will receive a retirement benefit yielding a pro rata

 

weekly amount equal to or larger than the claimant's weekly benefit

 

rate as otherwise established under this act, the claimant shall

 

not receive unemployment benefits.

 

     (b) If any base period employer or chargeable employer has

 

contributed to the financing of a retirement plan under which the

 

claimant is receiving or will receive a retirement benefit yielding


 

a pro rata weekly amount less than the claimant's weekly benefit

 

rate as otherwise established under this act, then the weekly

 

benefit rate otherwise payable to the claimant shall be reduced by

 

an amount equal to the pro rata weekly amount, adjusted to the next

 

lower multiple of $1.00, which the claimant is receiving or will

 

receive as a retirement benefit.

 

     (c) If no base period or separating employer has contributed

 

to the financing of a retirement plan under which the claimant is

 

receiving or will receive a retirement benefit, then the weekly

 

benefit rate of the claimant as otherwise established under this

 

act shall not be reduced due to receipt of a retirement benefit.

 

     (g) Notwithstanding any other provision of this act, an

 

unemployed individual who is satisfactorily pursuing vocational

 

training or retraining pursuant to section 28(2) or the workforce

 

investment act of 1998, Public Law 105-220, in preparation for

 

entry into a high-demand occupation following separation from a

 

declining occupation or involuntary and indefinite separation from

 

employment in which permanent operations have been reduced, and who

 

has exhausted all benefits available under subsection (d) may shall

 

be paid for each week of participation in approved vocational

 

training pursued beyond the date of exhaustion a benefit amount in

 

accordance with subsection (c), but not in excess of the

 

individual's most recent weekly benefit rate. However, an

 

individual shall not be paid training benefits totaling more than

 

18 26 times the individual's most recent weekly benefit rate. The

 

expiration or termination of a benefit year shall not stop or

 

interrupt payment of training benefits if the training for which


 

the benefits were granted began before expiration or termination of

 

the benefit year. Training benefits shall not be paid under this

 

subsection, however, to an individual who is receiving a similar

 

stipend or other training allowance for nontraining costs. Training

 

benefits shall not be paid under this subsection if the individual

 

is entitled to unemployment compensation under any federal

 

unemployment compensation program or under the federal-state

 

extended unemployment compensation program or if the individual is

 

entitled to establish a new claim for regular state unemployment

 

benefits under this act.

 

     (h) A payment of accrued unemployment benefits shall not be

 

made to an eligible individual or in behalf of that individual as

 

provided in subsection (e) more than 6 years after the ending date

 

of the benefit year covering the payment or 2 calendar years after

 

the calendar year in which there is final disposition of a

 

contested case, whichever is later.

 

     (i) Benefits based on service in employment described in

 

section 42(8), (9), and (10) are payable in the same amount, on the

 

same terms, and subject to the same conditions as compensation

 

payable on the basis of other service subject to this act, except

 

that:

 

     (1) With respect to service performed in an instructional,

 

research, or principal administrative capacity for an institution

 

of higher education as defined in section 53(2), or for an

 

educational institution other than an institution of higher

 

education as defined in section 53(3), benefits shall not be paid

 

to an individual based on those services for any week of


 

unemployment beginning after December 31, 1977 that commences

 

during the period between 2 successive academic years or during a

 

similar period between 2 regular terms, whether or not successive,

 

or during a period of paid sabbatical leave provided for in the

 

individual's contract, to an individual if the individual performs

 

the service in the first of the academic years or terms and if

 

there is a contract or a reasonable assurance that the individual

 

will perform service in an instructional, research, or principal

 

administrative capacity for an institution of higher education or

 

an educational institution other than an institution of higher

 

education in the second of the academic years or terms, whether or

 

not the terms are successive.

 

     (2) With respect to service performed in other than an

 

instructional, research, or principal administrative capacity for

 

an institution of higher education as defined in section 53(2) or

 

for an educational institution other than an institution of higher

 

education as defined in section 53(3), benefits shall not be paid

 

based on those services for any week of unemployment beginning

 

after December 31, 1977 that commences during the period between 2

 

successive academic years or terms to any individual if that

 

individual performs the service in the first of the academic years

 

or terms and if there is a reasonable assurance that the individual

 

will perform the service for an institution of higher education or

 

an educational institution other than an institution of higher

 

education in the second of the academic years or terms.

 

     (3) With respect to any service described in subdivision (1)

 

or (2), benefits shall not be paid to an individual based upon


 

service for any week of unemployment that commences during an

 

established and customary vacation period or holiday recess if the

 

individual performs the service in the period immediately before

 

the vacation period or holiday recess and there is a contract or

 

reasonable assurance that the individual will perform the service

 

in the period immediately following the vacation period or holiday

 

recess.

 

     (4) If benefits are denied to an individual for any week

 

solely as a result of subdivision (2) and the individual was not

 

offered an opportunity to perform in the second academic year or

 

term the service for which reasonable assurance had been given, the

 

individual is entitled to a retroactive payment of benefits for

 

each week for which the individual had previously filed a timely

 

claim for benefits. An individual entitled to benefits under this

 

subdivision may apply for those benefits by mail in accordance with

 

R 421.210 of the Michigan administrative code as promulgated by the

 

commission.

 

     (5) Benefits based upon services in other than an

 

instructional, research, or principal administrative capacity for

 

an institution of higher education shall not be denied for any week

 

of unemployment commencing during the period between 2 successive

 

academic years or terms solely because the individual had performed

 

the service in the first of the academic years or terms and there

 

is reasonable assurance that the individual will perform the

 

service for an institution of higher education or an educational

 

institution other than an institution of higher education in the

 

second of the academic years or terms, unless a denial is required


 

as a condition for full tax credit against the tax imposed by the

 

federal unemployment tax act, chapter 23 of subtitle C of the

 

internal revenue code of 1986, 26 U.S.C. USC 3301 to 3311.

 

     (6) For benefit years established before the conversion date

 

prescribed in section 75 October 1, 2000, and notwithstanding

 

subdivisions (1), (2), and (3), the denial of benefits does not

 

prevent an individual from completing requalifying weeks in

 

accordance with section 29(3) nor does the denial prevent an

 

individual from receiving benefits based on service with an

 

employer other than an educational institution for any week of

 

unemployment occurring between academic years or terms, whether or

 

not successive, or during an established and customary vacation

 

period or holiday recess, even though the employer is not the most

 

recent chargeable employer in the individual's base period.

 

However, in that case section 20(b) applies to the sequence of

 

benefit charging, except for the employment with the educational

 

institution, and section 50(b) applies to the calculation of credit

 

weeks. When a denial of benefits under subdivision (1) no longer

 

applies, benefits shall be charged in accordance with the normal

 

sequence of charging as provided in section 20(b).

 

     (7) For benefit years beginning after the conversion date

 

prescribed in section 75 on or after October 1, 2000, and

 

notwithstanding subdivisions (1), (2), and (3), the denial of

 

benefits shall not prevent an individual from completing

 

requalifying weeks in accordance with section 29(3) nor shall the

 

denial prevent an individual from receiving benefits based on

 

service with another base period employer other than an educational


 

institution for any week of unemployment occurring between academic

 

years or terms, whether or not successive, or during an established

 

and customary vacation period or holiday recess. However, when

 

benefits are paid based on service with 1 or more base period

 

employers other than an educational institution, the individual's

 

weekly benefit rate shall be calculated in accordance with

 

subsection (b)(1) but during the denial period the individual's

 

weekly benefit payment shall be reduced by the portion of the

 

payment attributable to base period wages paid by an educational

 

institution and the account or experience account of the

 

educational institution shall not be charged for benefits payable

 

to the individual. When a denial of benefits under subdivision (1)

 

is no longer applicable, benefits shall be paid and charged on the

 

basis of base period wages with each of the base period employers

 

including the educational institution.

 

     (8) For the purposes of this subsection, "academic year" means

 

that period, as defined by the educational institution, when

 

classes are in session for that length of time required for

 

students to receive sufficient instruction or earn sufficient

 

credit to complete academic requirements for a particular grade

 

level or to complete instruction in a noncredit course.

 

     (9) In accordance with subdivisions (1), (2), and (3),

 

benefits for any week of unemployment shall be denied to an

 

individual who performed services described in subdivision (1),

 

(2), or (3) in an educational institution while in the employ of an

 

educational service agency. For the purpose of this subdivision,

 

"educational service agency" means a governmental agency or


 

governmental entity that is established and operated exclusively

 

for the purpose of providing the services to 1 or more educational

 

institutions.

 

     (j) Benefits shall not be paid to an individual on the basis

 

of any base period services, substantially all of which consist of

 

participating in sports or athletic events or training or preparing

 

to participate, for a week that commences during the period between

 

2 successive sport seasons or similar periods if the individual

 

performed the services in the first of the seasons or similar

 

periods and there is a reasonable assurance that the individual

 

will perform the services in the later of the seasons or similar

 

periods.

 

     (k)(1) Benefits shall are not be payable on the basis of

 

services performed by an alien unless the alien is an individual

 

who was lawfully admitted for permanent residence at the time the

 

services were performed, was lawfully present for the purpose of

 

performing the services, or was permanently residing in the United

 

States under color of law at the time the services were performed,

 

including an alien who was lawfully present in the United States

 

under section 212(d)(5) of the immigration and nationality act,

 

chapter 477, 66 Stat. 182, 8 U.S.C. 1182 8 USC 1182(d)(5).

 

     (2) Any data or information required of individuals applying

 

for benefits to determine whether benefits are payable because of

 

their alien status are uniformly required from all applicants for

 

benefits. The unemployment agency shall require each individual who

 

applies for benefits to supply information sufficient to determine

 

citizenship or alien status eligibility.


 

     (3) Where an individual whose application for benefits would

 

otherwise be approved, a A determination that to deny benefits to

 

that individual are not payable because of the an individual's

 

alien status shall not be made except only upon a preponderance of

 

the evidence.

 

     (m)(1) An individual filing a new claim for unemployment

 

compensation under this act, at the time of filing the claim, shall

 

disclose whether the individual owes child support obligations as

 

defined in this subsection. If an individual discloses that he or

 

she owes child support obligations and is determined to be eligible

 

for unemployment compensation, the commission shall notify the

 

state or local child support enforcement agency enforcing the

 

obligation that the individual has been determined to be eligible

 

for unemployment compensation.

 

     (2) Notwithstanding section 30, the commission shall deduct

 

and withhold from any unemployment compensation payable to an

 

individual who owes child support obligations by using whichever of

 

the following methods results in the greatest amount:

 

     (a) The amount, if any, specified by the individual to be

 

deducted and withheld under this subdivision.

 

     (b) The amount, if any, determined pursuant to an agreement

 

submitted to the commission under section 454(19)(B)(i) of part D of

 

title IV of the social security act, 42 U.S.C. 654 42 USC

 

654(19)(B)(i), by the state or local child support enforcement

 

agency.

 

     (c) Any amount otherwise required to be deducted and withheld

 

from unemployment compensation pursuant to legal process, as that


 

term is defined in section 462(e) of part D of title IV of the

 

social security act, 42 U.S.C. 662 42 USC 659(i)(5), properly

 

served upon the commission.

 

     (3) The amount of unemployment compensation subject to

 

deduction under subdivision (2) is that portion that remains

 

payable to the individual after application of the recoupment

 

provisions of section 62(a) and the reduction provisions of

 

subsections (c) and (f).

 

     (4) Any amount deducted and withheld under subdivision (2)

 

shall be paid by the commission to the appropriate state or local

 

child support enforcement agency.

 

     (5) Any amount deducted and withheld under subdivision (2)

 

shall be treated for all purposes as if it were paid to the

 

individual as unemployment compensation and paid by the individual

 

to the state or local child support enforcement agency in

 

satisfaction of the individual's child support obligations.

 

     (6) This subsection applies Provisions concerning deductions

 

under this subsection apply only if the state or local child

 

support enforcement agency agrees in writing to reimburse and does

 

reimburse the commission for the administrative costs incurred by

 

the commission under this subsection that are attributable to child

 

support obligations being enforced by the state or local child

 

support enforcement agency. The administrative costs incurred shall

 

be determined by the commission. The commission, in its discretion,

 

may require payment of administrative costs in advance.

 

     (7) As used in this subsection:

 

     (a) "Unemployment compensation", for purposes of subdivisions


 

(1) through to (5), means any compensation payable under this act,

 

including amounts payable by the commission pursuant to an

 

agreement under any federal law providing for compensation,

 

assistance, or allowances with respect to unemployment.

 

     (b) "Child support obligations" includes only obligations that

 

are being enforced pursuant to a plan described in section 454 of

 

part D of title IV of the social security act, 42 U.S.C. USC 654,

 

that has been approved by the secretary of health and human

 

services under part D of title IV of the social security act,

 

chapter 531, 49 Stat. 620, 42 U.S.C. USC 651 to 655, 656 to 660,

 

and 663 to 669b.

 

     (c) "State or local child support enforcement agency" means

 

any agency of this state or a political subdivision of this state

 

operating pursuant to a plan described in subparagraph (b).

 

     (n) Subsection (i)(2) applies to services performed by school

 

bus drivers employed by a private contributing employer holding a

 

contractual relationship with an educational institution, but only

 

if at least 75% of the individual's base period wages with that

 

employer are attributable to services performed as a school bus

 

driver.

 

     (o)(1) For weeks of unemployment beginning after July 1, 1996,

 

unemployment benefits based on services by a seasonal worker

 

performed in seasonal employment shall be are payable only for

 

weeks of unemployment that occur during the normal seasonal work

 

period. Benefits shall not be paid based on services performed in

 

seasonal employment for any week of unemployment beginning after

 

March 28, 1996 that begins during the period between 2 successive


 

normal seasonal work periods to any individual if that individual

 

performs the service in the first of the normal seasonal work

 

periods and if there is a reasonable assurance that the individual

 

will perform the service for a seasonal employer in the second of

 

the normal seasonal work periods. If benefits are denied to an

 

individual for any week solely as a result of this subsection and

 

the individual is not offered an opportunity to perform in the

 

second normal seasonal work period for which reasonable assurance

 

of employment had been given, the individual is entitled to a

 

retroactive payment of benefits under this subsection for each week

 

that the individual previously filed a timely claim for benefits.

 

An individual may apply for any retroactive benefits under this

 

subsection in accordance with R 421.210 of the Michigan

 

administrative code.

 

     (2) Not less than 20 days before the estimated beginning date

 

of a normal seasonal work period, an employer may apply to the

 

commission in writing for designation as a seasonal employer. At

 

the time of application, the employer shall conspicuously display a

 

copy of the application on the employer's premises. Within 90 days

 

after receipt of the application, the commission shall determine if

 

the employer is a seasonal employer. A determination or

 

redetermination of the commission concerning the status of an

 

employer as a seasonal employer, or a decision of a referee or the

 

board of review, or of the courts of this state concerning the

 

status of an employer as a seasonal employer, which has become

 

final, together with the record thereof, may be introduced in any

 

proceeding involving a claim for benefits, and the facts found and


 

decision issued in the determination, redetermination, or decision

 

shall be conclusive unless substantial evidence to the contrary is

 

introduced by or on behalf of the claimant.

 

     (3) If the employer is determined to be a seasonal employer,

 

the employer shall conspicuously display on its premises a notice

 

of the determination and the beginning and ending dates of the

 

employer's normal seasonal work periods. The notice shall be

 

furnished by the commission. The notice shall additionally specify

 

that an employee must timely apply for unemployment benefits at the

 

end of a first seasonal work period to preserve his or her right to

 

receive retroactive unemployment benefits in the event that if he

 

or she is not reemployed by the seasonal employer in the second of

 

the normal seasonal work periods.

 

     (4) The commission may issue a determination terminating an

 

employer's status as a seasonal employer on the commission's own

 

motion for good cause, or upon the written request of the employer.

 

A termination determination under this subdivision terminates an

 

employer's status as a seasonal employer, and shall become becomes

 

effective on the beginning date of the normal seasonal work period

 

that would have immediately followed the date the commission issues

 

issued the determination. A determination under this subdivision is

 

subject to review in the same manner and to the same extent as any

 

other determination under this act.

 

     (5) An employer whose status as a seasonal employer is

 

terminated under subdivision (4) may not reapply for a seasonal

 

employer status determination until after a regularly recurring

 

normal seasonal work period has begun and ended.


 

     (6) If a seasonal employer informs an employee who received

 

assurance of being rehired that, despite the assurance, the

 

employee will not be rehired at the beginning of the employer's

 

next normal seasonal work period, this subsection shall does not

 

prevent the employee from receiving unemployment benefits in the

 

same manner and to the same extent he or she would receive benefits

 

under this act from an employer who has not been determined to be a

 

seasonal employer.

 

     (7) A successor of a seasonal employer is considered to be a

 

seasonal employer unless the successor provides the commission,

 

within 120 days after the transfer, with a written request for

 

termination of its status as a seasonal employer in accordance with

 

subdivision (4).

 

     (8) At the time an employee is hired by a seasonal employer,

 

the employer shall notify the employee in writing whether if the

 

employee will be a seasonal worker. The employer shall provide the

 

worker with written notice of any subsequent change in the

 

employee's status as a seasonal worker. If an employee of a

 

seasonal employer is denied benefits because that employee is a

 

seasonal worker, the employee may contest that designation in

 

accordance with section 32a.

 

     (9) As used in this subsection:

 

     (a) "Construction industry" means the work activity designated

 

in sector group 23 -- construction of the North American industry

 

classification system -- United States office of management and

 

budget, 1997 2002 edition.

 

     (b) "Normal seasonal work period" means that period or those


 

periods of time determined pursuant to rules promulgated by the

 

commission during which an individual is employed in seasonal

 

employment.

 

     (c) "Seasonal employment" means the employment of 1 or more

 

individuals primarily hired to perform services in an industry,

 

other than the construction industry, that does either of the

 

following:

 

     (1) Customarily operates during regularly recurring periods of

 

26 weeks or less in any 52-consecutive-week period.

 

     (2) Customarily employs at least 50% of its employees for

 

regularly recurring periods of 26 weeks or less within a period of

 

52 consecutive weeks.

 

     (d) "Seasonal employer" means an employer, other than an

 

employer in the construction industry, who applies to the

 

commission for designation as a seasonal employer and who the

 

commission determines to be an employer whose operations and

 

business are substantially engaged in seasonal employment.

 

     (e) "Seasonal worker" means a worker who has been paid wages

 

by a seasonal employer for work performed only during the normal

 

seasonal work period.

 

     (10) If this subsection is found by This subsection does not

 

apply if the United States department of labor finds it to be

 

contrary to the federal unemployment tax act, chapter 23 of the

 

internal revenue code of 1986, 26 U.S.C. USC 3301 to 3311, or the

 

social security act, chapter 531, 49 Stat. 620, and if conformity

 

with the federal law is required as a condition for full tax credit

 

against the tax imposed under the federal unemployment tax act, 26


 

USC 3301 to 3311, or as a condition for receipt by the commission

 

of federal administrative grant funds under the social security

 

act, this subsection shall be invalid chapter 531, 49 Stat. 620.

 

     (p) Benefits shall not be paid to an individual based upon his

 

or her services as a school crossing guard for any week of

 

unemployment that begins between 2 successive academic years or

 

terms, if that individual performs the services of a school

 

crossing guard in the first of the academic years or terms and has

 

a reasonable assurance that he or she will perform those services

 

in the second of the academic years or terms.

 

     Sec. 28. (1) An unemployed individual shall be is eligible to

 

receive benefits with respect to any week only if the commission

 

finds that:

 

     (a) For benefit years established before the conversion date

 

prescribed in section 75 October 1, 2000, the individual has

 

registered for work at and thereafter has continued to report at an

 

employment office in accordance with such rules as the commission

 

may prescribe and is seeking work. The requirements that the

 

individual must report at an employment office, must register for

 

work, must be available to perform suitable full-time work, and

 

must seek work may be waived by the commission if the individual is

 

laid off and the employer who laid the individual off notifies the

 

commission in writing or by computerized data exchange that the

 

layoff is temporary and that work is expected to be available for

 

the individual within a declared number of days, not to exceed 45

 

calendar days following the last day the individual worked. This

 

waiver shall is not be effective unless the notification from the


 

employer has been received by the commission before the individual

 

has completed his or her first compensable week following layoff.

 

If the individual is not recalled within the specified period, the

 

waiver shall cease to be operative with respect to that layoff.

 

Except for a period of disqualification, the requirement that the

 

individual shall seek work may be waived by the commission where if

 

it finds that suitable work is unavailable both in the locality

 

where the individual resides and in those localities in which the

 

individual has earned base period credit weeks. This waiver shall

 

not apply, for weeks of unemployment beginning on or after March 1,

 

1981, to a claimant enrolled and attending classes as a full-time

 

student. An individual shall have has satisfied the requirement of

 

personal reporting at an employment office, as applied to a week in

 

a period during which the requirements of registration and seeking

 

work have been waived by the commission pursuant to this

 

subdivision, if the individual has satisfied the personal reporting

 

requirement with respect to a preceding week in that period and the

 

individual has reported with respect to the week by mail in

 

accordance with the rules promulgated by the commission. For

 

benefit years established on or after the conversion date

 

prescribed in section 75 October 1, 2000, the individual has

 

registered for work and has continued to report in accordance with

 

such rules as that the commission may prescribe prescribes and is

 

seeking work. The requirements that the individual must report,

 

must register for work, must be available to perform suitable full-

 

time work, and must seek work may be waived by the commission if

 

the individual is laid off and the employer who laid the individual


 

off notifies the commission in writing or by computerized data

 

exchange that the layoff is temporary and that work is expected to

 

be available for the individual within a declared number of days,

 

not to exceed 45 calendar days following the last day the

 

individual worked. This waiver shall is not be effective unless the

 

notification from the employer has been is received by the

 

commission before the individual has completed his or her first

 

compensable week following layoff. If the individual is not

 

recalled within the specified period, the waiver shall cease to be

 

operative with respect to that layoff. Except for a period of

 

disqualification, the requirement that the individual shall seek

 

work may be waived by the commission where if it finds that

 

suitable work is unavailable both in the locality where the

 

individual resides and in those localities in which the individual

 

has earned wages during or after the base period. This waiver shall

 

does not apply to a claimant enrolled in and attending classes as a

 

full-time student. An individual shall be is considered to have

 

satisfied the requirement of personal reporting at an employment

 

office, as applied to a week in a period during which the

 

requirements of registration and seeking work have been waived by

 

the commission pursuant to this subdivision, if the individual has

 

satisfied the personal reporting requirement with respect to a

 

preceding week in that period and the individual has reported with

 

respect to the week by mail in accordance with the rules

 

promulgated by the commission.

 

     (b) The individual has made a claim for benefits in accordance

 

with section 32 and has provided the commission with his or her


 

social security number.

 

     (c) The individual is able and available to perform suitable

 

full-time work of a character which that the individual is

 

qualified to perform by past experience or training, which is of a

 

character generally similar to work for which the individual has

 

previously received wages, and for which the individual is

 

available, full time, either at a locality at which the individual

 

earned wages for insured work during his or her base period or at a

 

locality where it is found by the commission finds that such work

 

is available.

 

     (d) In the event of the death of an individual's immediate

 

family member, the eligibility requirements of availability and

 

reporting shall be waived for the day of the death and for 4

 

consecutive calendar days thereafter. As used in this subdivision,

 

"immediate family member" means a spouse, child, stepchild, adopted

 

child, grandchild, parent, grandparent, brother, or sister of the

 

individual or his or her spouse. It shall also include the spouse

 

of any of the persons specified in the previous sentence.

 

     (e) The individual participates in reemployment services, such

 

as job search assistance services, if the individual has been

 

determined or redetermined by the commission to be likely to

 

exhaust regular benefits and need reemployment services pursuant to

 

a profiling system established by the commission.

 

     (2) The commission may authorize an individual with an

 

unexpired benefit year to pursue vocational training or retraining

 

only if the commission finds that:

 

     (a) Reasonable opportunities for employment in occupations for


 

which the individual is fitted by training and experience do not

 

exist in the locality in which the individual is claiming benefits.

 

     (b) The vocational training course relates to an occupation or

 

skill for which there are, or are expected to be in the immediate

 

future, reasonable employment opportunities.

 

     (c) The training course has been approved by a local advisory

 

council on which both management and labor are represented, or if

 

there is no local advisory council, by the commission.

 

     (d) The individual has the required qualifications and

 

aptitudes to complete the course successfully.

 

     (e) The vocational training course has been approved by the

 

state board of education and is maintained by a public or private

 

school or by the commission.

 

     (3) Notwithstanding any other provision of this act, an

 

otherwise eligible individual shall not be ineligible for benefits

 

because he or she is participating in training with the approval of

 

the commission or in a job training program authorized under the

 

workforce investment act of 1998, Public Law 105-220. For each week

 

that the commission finds that an individual who is claiming

 

benefits under this act and who is participating in training with

 

the approval of the commission, is satisfactorily pursuing an

 

approved course of vocational training satisfactorily pursuing the

 

approved or authorized training, it shall waive the requirements

 

that he or she be available for work and be seeking work as

 

prescribed in subsection (1)(a) and (c), and it shall find good

 

cause for his or her failure to apply for suitable work, report to

 

a former employer for an interview concerning suitable work, or


 

accept suitable work as required in section 29(1)(c), (d), and (e).

 

     (4) The waiver of the requirement that a claimant seek work,

 

as provided in subsection (1)(a), shall not be applicable does not

 

apply to weeks of unemployment for which the claimant is claiming

 

extended benefits if section 64(8)(a)(ii) 64(7)(a)(ii) is in effect,

 

unless the individual is participating in training approved by the

 

commission.

 

     (5) Notwithstanding any other provisions of this act, an

 

otherwise eligible individual shall not be denied benefits for any

 

week beginning after October 30, 1982 solely because the individual

 

is in training approved under section 236(a)(1) of the trade act of

 

1974, as amended, 19 U.S.C. USC 2296, nor shall the individual be

 

denied benefits by reason of leaving work to enter such training if

 

the work left is not suitable employment. Furthermore, an otherwise

 

eligible individual shall not be denied benefits because of the

 

application to any such week in training of provisions of this act,

 

or any applicable federal unemployment compensation law, relating

 

to availability for work, active search for work, or refusal to

 

accept work. For purposes of this subsection, "suitable employment"

 

means, with respect to an individual, work of a substantially equal

 

or higher skill level than the individual's past adversely affected

 

employment, as defined for purposes of the trade act of 1974, 19

 

U.S.C. USC 2101 to 2495, and wages for that work at not less than

 

80% of the individual's average weekly wage as determined for the

 

purposes of the trade act of 1974.