Bill Text: MI HB5165 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Employment security; other; protection for employers and affected individuals with regard to identity theft; provide for. Amends 1936 (Ex Sess) PA 1 (MCL 421.1 - 421.75) by adding secs. 54f, 54g & 54h. TIE BAR WITH: HB 5166'17, HB 5167'17, HB 5168'17, HB 5169'17, HB 5170'17, HB 5171'17, HB 5172'17
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2017-12-28 - Assigned Pa 225'17 With Immediate Effect [HB5165 Detail]
Download: Michigan-2017-HB5165-Engrossed.html
HB-5165, As Passed House, November 8, 2017
SUBSTITUTE FOR
HOUSE BILL NO. 5165
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
(MCL 421.1 to 421.75) by adding sections 54f, 54g, and 54h.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 54f. (1) An employer that is an interested party to a
claim for benefits, or the employer's agent, may report to the
unemployment agency that the claim is fraudulent because the
individual who filed the claim is an impostor. The unemployment
agency shall accept reports submitted under this subsection by
mail, fax, and any other means approved by the unemployment agency
and shall maintain a website for employers to submit reports. A
report submitted under this subsection must include all of the
following:
(a) A statement that the employer believes that the claim is
fraudulent because the individual who filed the claim is an
impostor and the facts or evidence supporting its belief.
(b) The name and last known address of the affected individual
and, if available, the affidavit signed by the affected individual
under subsection (2).
(c) A statement that the employer is not making the report
frivolously and that the information contained in the report is, to
the best of the employer's knowledge, complete and accurate.
(d) The name, address, electronic mail address, and telephone
number of the individual submitting the report.
(e) The signature of the individual submitting the report.
(2) An affected individual may submit an affidavit to an
employer or the unemployment agency. The unemployment agency shall
include on its website an affidavit form that meets the
requirements of this subsection. An affidavit submitted under this
subsection must include all of the following:
(a) The name, address, and social security number of the
affected individual.
(b) A statement that the affected individual did not file the
claim for benefits with the unemployment agency.
(c) A statement that the information in the affidavit is
complete and accurate.
(d) The signature of the affected individual.
(3) Upon receiving both a report submitted under subsection
(1) and an affidavit submitted under subsection (2), the
unemployment agency shall do both of the following:
(a) Make a determination within 2 business days regarding
whether the claim is fraudulent and whether the impostor committed
identity theft and mail the determination to all interested
parties. If the unemployment agency determines that the impostor
committed identity theft, the determination must state that the
claim is canceled and is null and void.
(b) After making a determination under subdivision (a) that
the claim is fraudulent, cancel all benefit payments on the claim.
(4) Upon receiving only a report submitted under subsection
(1) or upon receiving only an affidavit submitted under subsection
(2), the unemployment agency shall do all of the following:
(a) Notify the impostor by mail that the impostor must, within
10 days after the date of the notice, provide proof of his or her
identity by providing the unemployment agency with copies of the
acceptable documents as provided in the Form I-9. As used in this
subdivision, "Form I-9" means the employment verification form that
fulfills the employment verification obligations under 8 CFR
274a.2.
(b) If the impostor does not provide proof of his or her
identity pursuant to subdivision (a), the unemployment agency shall
do all of the following:
(i) Make a determination that the impostor did not provide
proof of his or her identity pursuant to subdivision (a) and cease
making payments on the claim until after making a determination
under subparagraph (iii).
(ii) Conduct an investigation to determine whether the claim
is fraudulent and whether the impostor committed identity theft.
(iii) Make a determination regarding whether the claim is
fraudulent and whether the impostor committed identity theft and
mail the determination to all interested parties. If the
unemployment agency determines that the impostor committed identity
theft, the determination must state that the claim is canceled and
is null and void.
(iv) After making a determination under subparagraph (iii)
that the claim is fraudulent, cancel all benefit payments on the
claim.
(c) If the impostor provides proof of his or her identity
pursuant to subdivision (a), the unemployment agency shall do both
of the following:
(i) Conduct an investigation to determine whether the claim is
fraudulent and whether the impostor committed identity theft.
(ii) Make a determination regarding whether the claim is
fraudulent and whether the impostor committed identity theft and
mail the determination to all interested parties.
(5) An interested party may appeal a determination made under
subsection (3) or (4) pursuant to section 32a.
(6) If the unemployment agency determines under subsection (3)
or (4) that an impostor committed identity theft to obtain
benefits, the unemployment agency shall, within 60 days after the
determination becomes final, credit the employer's account for the
benefits paid to the impostor that were charged to the employer's
account.
(7) Upon the request of an individual, the unemployment agency
shall provide the individual with any determinations the
unemployment agency made regarding a claim submitted by an impostor
to which the individual was an interested party.
(8) An employer that submits a frivolous report or otherwise
intentionally misrepresents information in a report submitted under
subsection (1), or an individual who intentionally misrepresents
information in an affidavit submitted under subsection (2), is
subject to the sanctions and penalties as provided in section 54.
(9) An affected individual is an interested party for purposes
of this section and any appeals made under section 32a related to a
determination made under this section.
(10) As used in this section:
(a) "Affected individual" means an individual whose identity
was or is alleged to have been stolen by an impostor.
(b) "Identity theft" means that term as defined in section 24
of chapter VII of the code of criminal procedure, 1927 PA 175, MCL
767.24.
(c) "Impostor" means an individual who committed or is alleged
to have committed identity theft to obtain benefits.
Sec. 54g. (1) By January 31 each year, beginning in 2019, the
unemployment agency shall provide a written report regarding claims
submitted by impostors under this act to the chairpersons of the
standing committees and the appropriations subcommittees of the
house of representatives and senate having jurisdiction over
legislation pertaining to employment security. The report must
include all of the following information from the immediately
preceding calendar year in a form that does not identify an
individual, claimant, or employer:
(a) The procedures the unemployment agency has adopted to
mitigate the incidence of claims submitted by impostors.
(b) The total number of reports submitted under section 54f(1)
and the number of reports submitted under section 54f(1) that the
unemployment agency determined met the requirements of section
54f(8).
(c) The total number of affidavits submitted under section
54f(2) and the number of affidavits submitted under section 54f(2)
that the unemployment agency determined met the requirements of
section 54f(8).
(d) The number of determinations made under section 54f(3) and
(4) where the unemployment agency determined that an impostor
committed identity theft.
(e) The number of determinations made under section 54f(3) and
(4) where the unemployment agency determined that an impostor did
not commit identity theft.
(f) The total amount of benefits paid to impostors and the
total amount recovered from impostors.
(2) As used in this section:
(a) "Identity theft" means that term as defined in section 24
of chapter VII of the code of criminal procedure, 1927 PA 175, MCL
767.24.
(b) "Impostor" means that term as defined in section 54f.
Sec. 54h. (1) The director shall appoint an individual to
perform activities that include, but are not limited to:
(a) Making referrals for criminal, civil, and administrative
action and disposition of appropriate cases involving impostors.
(b) Reviewing administrative policies, practices, and
procedures.
(c) Reviewing procedures the unemployment agency has adopted
to mitigate the incidence of claims submitted by impostors, and
making recommendations to improve those procedures.
(d) Making recommendations to improve integrity and
accountability within the unemployment agency.
(e) Working with the auditor general to ensure effective and
efficient processes within the unemployment agency.
(2) As used in this section, "impostor" means that term as
defined in section 54f.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
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) House Bill No. 5166.
(b) House Bill No. 5167.
(c) House Bill No. 5168.
(d) House Bill No. 5169.
(e) House Bill No. 5170.
(f) House Bill No. 5171.
(g) House Bill No. 5172.
