SENATE BILL No. 527

 

 

June 28, 2011, Introduced by Senators NOFS, PROOS, MARLEAU, PAPPAGEORGE, SCHUITMAKER, CASWELL and WALKER 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 2010 PA 322.

 

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, 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 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 is 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 half 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.

 

     (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 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.

 

     (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 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.

 

     (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 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, 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 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.

 

     (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 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 half of the cost of the benefit, then only half

 

of the benefit is treated as a retirement benefit.

 

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

 

benefit is treated as a retirement benefit.

 

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

 

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.

 

     (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

 

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.

 

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

 

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.

 

     (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 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.

 

     (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.during

 

regularly recurring periods of 26 weeks or less in any 52-week

 

period, other than services in the construction industry.

 

     (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 is an employer whose operations and business

 

require employees 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.