SENATE BILL No. 501

June 16, 2011, Introduced by Senators KOWALL, JANSEN and HUNE and referred to the Committee on Economic Development.

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

"Michigan employment security act,"

by amending section 27 (MCL 421.27), as amended by 2011 PA 14.

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 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

October 1, 2000, shall be 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 on or after October 1, 2000 and before January 15,

2012, the individual's weekly benefit rate 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 for each dependent as defined in subdivision (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 April 26, 2002 and $362.00 for claims filed on and after

April 26, 2002. The weekly benefit rate for an individual with

respect to benefit years beginning on or after January 15, 2012

shall be 47% of the individual's prior average weekly wage, plus

$6.00 for each dependent as defined in subdivision (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 $362.00.

For purposes of this determination, "prior average weekly wage"

means the individual's total wages credited during the individual's

base period, divided by 52. The weekly benefit rate for an

individual claiming benefits on and after 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. 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 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 before

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 26 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, 26

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 October 1, 2000, a

dependent means any of the following persons who are receiving and

for at least 90 consecutive days immediately before 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 1/2 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.

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 on or after October 1, 2000, a

dependent means any of the following persons who received for at

least 90 consecutive days immediately before 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.

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

beginning 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 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 is

good cause 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 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 is good

cause 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.

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 subdivision (2) or (3) results in a benefit rate

greater than zero for that week, the claimant's balance of weeks of

benefit payments 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 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 3/4 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 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(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, for each eligible individual filing

an initial claim before January 15, 2012, not more than 26 weeks of

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

individual in a benefit year. For each eligible individual filing

an initial claim on or after January 15, 2012, not more than 20

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 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 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.

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 claimed after the

information on which the reconsideration is based was received by

the commission.

(4)(a) As used in this 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 are not retirement benefits.

(b) If a benefit as described in subparagraph (a) is payable

or paid to the individual under a plan to which the individual has

contributed:

(i) Less than 1/2 of the cost of the benefit, then only 1/2 of

the benefit is treated as a retirement benefit.

(ii) One-half or more of the cost of the benefit, then none of

the benefit is treated as a retirement benefit.

contribution to the cost of his or her retirement benefit 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, 26 USC 3301 to 3311.

(6) For benefit years beginning 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). 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 apply to the benefit claims of those

retired persons. However, if the reduction would impair the full

tax credit against the tax imposed by the federal unemployment tax

act, 26 USC 3301 to 3311, unemployment benefits shall not be

reduced as provided in subparagraphs (a), (b), and (c) for receipt

of any governmental or other pension, retirement or retired pay,

annuity, or other similar payment that was not includable in the

gross income of the individual for the taxable year in which it was

received because it was a part of a rollover distribution.

(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.

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

individual pursuing vocational training or retraining pursuant to

section 28(2) who has exhausted all benefits available under

subsection (d) may be paid for each week of 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 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.

(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, 26 USC 3301 to 3311.

(6) For benefit years established before 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 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 are not 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, 8

USC 1182.

(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.

(3) If an individual's application for benefits would

otherwise be approved, a determination that benefits to that

individual are not payable because of the individual's alien status

shall not be made except 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 42 USC 654(19)(b)(i), by the

state or local child support enforcement agency.

from unemployment compensation by legal process, as that term is

defined in 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) 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) 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 42 USC 654 that

has been approved by the secretary of health and human services

under 42 USC 651 to 669b.

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 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 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 becomes effective on

the beginning date of the normal seasonal work period that would

have immediately followed the date the commission issues 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 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 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

classification system - United States office of management and

budget, 1997 edition.

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

periods of time determined under rules promulgated by the

commission during which an individual is employed in seasonal

employment.

individuals primarily hired to perform services ~~in an industry,~~ for

an employer other than an employer in 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)~~ meets either of the following conditions:

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

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

52 consecutive weeks.

(2) Customarily requires employees for peak employment

periods, such as holiday work or work with a predetermined

beginning and ending date that does not exceed 26 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. A

seasonal employer designation under this act need not correspond to

a category assigned under the North American classification system

� United States office of management and budget.

(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) This subsection does not apply if the United States

department of labor finds it to be contrary to the federal

unemployment tax act, 26 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, 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.