Bill Text: MI SB0613 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Employment security; administration; sanctions for violators; revise. Amends sec. 54 of 1936 (Ex Sess) PA 1 (MCL 421.54). TIE BAR WITH: SB 0612'09, SB 0614'09, SB 0615'09
Spectrum: Partisan Bill (Republican 10-0)
Status: (Engrossed - Dead) 2009-06-25 - Referred To Committee On Labor [SB0613 Detail]
Download: Michigan-2009-SB0613-Engrossed.html
SB-0613, As Passed Senate, June 25, 2009
SENATE BILL No. 613
May 27, 2009, Introduced by Senators RICHARDVILLE, PATTERSON, BIRKHOLZ, PAPPAGEORGE, BROWN, JANSEN, CROPSEY, VAN WOERKOM, SANBORN and KAHN and referred to the Committee on Commerce and Tourism.
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending section 54 (MCL 421.54), as amended by 2002 PA 192.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 54. (a) A person who willfully violates or intentionally
fails to comply with any of the provisions of this act, or a
regulation
of the commission unemployment
agency promulgated under
the authority of this act for which a penalty is not otherwise
provided
by this act is punishable subject
to sanctions as provided
in subdivision (i), (ii), (iii), or (iv), notwithstanding any other
statute of this state or of the United States:
(i) If the commission determines that an amount has been
obtained or withheld as a result of the intentional failure to
comply
with this act, the commission unemployment
agency may
recover the amount obtained as a result of the intentional failure
to comply plus damages equal to 3 times that amount.
(ii) The commission unemployment agency may refer the matter to
the prosecuting attorney of the county in which the alleged
violation
occurred for prosecution. If the commission unemployment
agency has not made its own determination under subdivision (i), the
penalty
recovery sought by the prosecutor shall include the amount
described in subdivision (i) and shall also include 1 or more of the
following penalties:
(A) If the amount obtained or withheld from payment as a
result of the intentional failure to comply is less than
$25,000.00, then 1 of the following:
(I) Imprisonment for not more than 1 year.
(II) The performance of community service of not more than 1
year but not to exceed 2,080 hours.
(III) A combination of (I) and (II) that does not exceed 1
year.
(B) If the amount obtained or withheld from payment as a
result of the intentional failure to comply is $25,000.00 or more
but less than $100,000.00, then 1 of the following:
(I) Imprisonment for not more than 2 years.
(II) The performance of community service of not more than 2
years but not to exceed 4,160 hours.
(III) A combination of (I) and (II) that does not exceed 2
years.
(C) If the amount obtained or withheld from payment as a
result of the intentional failure to comply is more than
$100,000.00, then 1 of the following:
(I) Imprisonment for not more than 5 years.
(II) The performance of community service of not more than 5
years but not to exceed 10,400 hours.
(III) A combination of (I) and (II) that does not exceed 5
years.
(iii) If the commission unemployment agency determines that an
amount has been obtained or withheld as a result of a knowing
violation
of this act, the commission unemployment
agency may
recover the amount obtained as a result of the knowing violation
and may also recover damages equal to 3 times that amount.
(iv) The commission unemployment agency may refer a matter
under subdivision (iii) to the prosecuting attorney of the county in
which the alleged violation occurred for prosecution. If the
commission
unemployment agency has not made its own determination
under
subdivision (iii), the penalty recovery sought
by the
prosecutor shall include the amount described in subdivision (iii)
and shall also include 1 or more of the following penalties:
(A) If the amount obtained or withheld from payment as a
result of the knowing violation is $100,000.00 or less, then 1 of
the following:
(I) Imprisonment for not more than 1 year.
(II) The performance of community service of not more than 1
year but not to exceed 2,080 hours.
(III) A combination of (I) and (II) that does not exceed 1
year.
(B) If the amount obtained or withheld from payment as a
result of the knowing violation is more than $100,000.00, then 1 of
the following:
(I) Imprisonment for not more than 2 years.
(II) The performance of community service of not more than 2
years but not to exceed 4,160 hours.
(III) A combination of (I) and (II) that does not exceed 2
years.
(b) Any employing unit or an officer or agent of an employing
unit,
a claimant, an employee of the commission unemployment
agency, or any other person who makes a false statement or
representation knowing it to be false, or knowingly and willfully
with intent to defraud fails to disclose a material fact, to obtain
or increase a benefit or other payment under this act or under the
unemployment compensation law of any state or of the federal
government, either for himself or herself or any other person, to
prevent or reduce the payment of benefits to an individual entitled
thereto or to avoid becoming or remaining a subject employer, or to
avoid or reduce a contribution or other payment required from an
employing unit under this act or under the unemployment
compensation law of any state or of the federal government, as
applicable, is subject to administrative fines and is punishable as
follows, notwithstanding any other penalties imposed under any
other statute of this state or of the United States:
(i) If the amount obtained as a result of the knowing false
statement or representation or the knowing and willful failure to
disclose
a material fact is less than $500.00, the commission
unemployment agency may recover the amount obtained as a result of
the knowing false statement or representation or the knowing and
willful failure to disclose a material fact and may also recover
damages equal to 2 times that amount. For a second or subsequent
violation described in this subdivision, the unemployment agency
may recover damages equal to 4 times the amount obtained.
(ii) If the amount obtained as a result of the knowing false
statement or representation or the knowing and willful failure to
disclose
a material fact is $500.00 or more, the commission
unemployment agency shall attempt to recover the amount obtained as
a result of the knowing false statement or representation or the
knowing and willful failure to disclose a material fact and may
also
recover damages equal to 4 times that amount. The commission
unemployment agency may refer the matter to the prosecuting
attorney of the county in which the alleged violation occurred for
prosecution.
If the commission unemployment
agency has not made its
own
determination under this subdivision, the penalty recovery
sought by the prosecutor shall include the amount described in this
subdivision and shall also include 1 or more of the following
penalties if the amount obtained is $1,000.00 or more:
(A) If the amount obtained or withheld from payment as a
result of the knowing false statement or representation or the
knowing and willful failure to disclose a material fact is
$1,000.00 or more but less than $25,000.00, then 1 of the
following:
(I) Imprisonment for not more than 1 year.
(II) The performance of community service of not more than 1
year but not to exceed 2,080 hours.
(III) A combination of (I) and (II) that does not exceed 1
year.
(B) If the amount obtained or withheld from payment as a
result of the knowing false statement or representation or the
knowing and willful failure to disclose a material fact is
$25,000.00 or more, then 1 of the following:
(I) Imprisonment for not more than 2 years.
(II) The performance of community service of not more than 2
years but not to exceed 4,160 hours.
(III) A combination of (I) and (II) that does not exceed 2
years.
(C) If the knowing false statement or representation or the
knowing and willful failure to disclose a material fact made to
obtain or withhold an amount from payment does not result in a loss
to
the commission, then a penalty recovery
shall be sought equal to
3 times the amount that would have been obtained by the knowing
false statement or representation or the knowing and willful
failure to disclose a material fact, but not less than $1,000.00,
and 1 of the following:
(I) Imprisonment for not more than 2 years.
(II) The performance of community service of not more than 2
years but not to exceed 4,160 hours.
(III) A combination of (I) and (II) that does not exceed 2
years.
(c) (1) Any employing unit or an officer or agent of an
employing unit or any other person failing to submit, when due, any
contribution report, wage and employment report, or other reports
lawfully
prescribed and required by the commission unemployment
agency
shall be subject to the assessment of a
penalty an
administrative fine for each report not submitted within the time
prescribed
by the commission unemployment
agency, as follows: In
the case of contribution reports not received within 10 days after
the
end of the reporting month the penalty fine shall be 10% of the
contributions due on the reports but not less than $5.00 or more
than $25.00 for a report. However, if the tenth day falls on a
Saturday,
Sunday, legal holiday, or other commission unemployment
agency nonwork day, the 10-day period shall run until the end of
the next day which is not a Saturday, Sunday, legal holiday, or
other
commission unemployment
agency nonwork day. In the case of
all
other reports referred to in this subsection, the penalty fine
shall be $10.00 for a report.
(2) Notwithstanding subdivision (1), any employer or an
officer or agent of an employer or any other person failing to
submit, when due, any quarterly wage detail report required by
section
13(2) shall be is subject to a penalty an administrative
fine of $25.00 for each untimely report.
(3)
When If a report is filed after the prescribed time and it
is shown to the satisfaction of the commission that the failure to
submit
the report was due to reasonable cause, a penalty fine shall
not
be imposed. The assessment of a penalty fine as provided in
this
subsection shall constitute constitutes
a final determination
which
shall be final unless the employer
files with the commission
an application with the unemployment agency for a redetermination
of the assessment in accordance with section 32a.
(d)
If any commissioner, employee
, or agent of the commission
unemployment
agency or member of the appeal board
willfully makes a
disclosure
of discloses confidential information obtained from any
employing unit or individual in the administration of this act for
any purpose inconsistent with or contrary to the purposes of this
act,
or a person who having obtained obtains
a list of applicants
for
work , or of
claimants or recipients of benefits
, under this
act
shall use or permit the uses
or permits use of that list for a
political purpose or for a purpose inconsistent with or contrary to
the
purposes of this act, he or she is guilty of a misdemeanor and
upon
conviction shall be punished punishable
by imprisonment for
not
more than 90 days , or by
a fine of not more than $1,000.00, or
both.
Notwithstanding the preceding sentence, if any commissioner,
commission
unemployment agency employee, agent of the commission
unemployment agency, or member of the board of review knowingly,
intentionally, and for financial gain, makes an illegal disclosure
of confidential information obtained under section 13(2), he or she
is guilty of a felony, punishable by imprisonment for not more than
1 year and 1 day.
(e)
A person who, without proper authority from the commission
unemployment agency, represents himself or herself to be an
employee of the commission to an employing unit or person for the
purpose of securing information regarding the unemployment or
employment
record of an individual is guilty of a misdemeanor and
upon
conviction shall be punished punishable
by imprisonment for
not
more than 90 days , or by
a fine of not more than $1,000.00, or
both.
(f) A person associated with a college, university, or public
agency of this state who makes use of any information obtained from
the
commission unemployment
agency in connection with a research
project of a public service nature, in a manner as to reveal the
identity of any individual or employing unit from or concerning
whom
the information was obtained by the commission unemployment
agency, or for any purpose other than use in connection with that
research
project, is guilty of a misdemeanor and upon conviction
shall
be punished punishable by imprisonment for not more than 90
days , or by a fine of not more than $1,000.00, or
both.
(g) As used in this section, "person" includes an individual,
copartnership, joint venture, corporation, receiver, or trustee in
bankruptcy.
(h)
This section shall apply applies
even if the amount
obtained or withheld from payment has been reported or reported and
paid by an individual involved in a violation of subsection (a) or
(b).
(i) If a determination is made that an individual has violated
this
section, the individual is subject to the penalty provisions
of
this section and, where if
applicable, the requirements of
section 62.
(j) Amounts recovered by the commission under subsection (a)
or
(b) shall be credited first to the
unemployment compensation
fund and thereafter amounts recovered that are in excess of the
amounts obtained or withheld as a result of the violation of
subsection
(a) and (b) shall be credited to the penalty and
interest
account of the contingent fund. Fines and penalties
Senate Bill No. 613 as amended June 25, 2009
Amounts recovered by the commission under subsections (c), (d),
(e), and (f) shall be credited to the penalty and interest account
of the contingent fund in accordance with section 10(6).
(k) Amounts recovered by the unemployment agency under
subsection (b) shall be credited as follows:
(i) Deductions from unemployment insurance benefits shall be
applied solely to the amount of the benefits liable to be repaid
under this section.
(ii) All other recoveries shall be applied first to
administrative sanctions and damages, then to interest, and then to
the amount liable to be repaid. The amounts applied to
administrative sanctions, damages, and interest shall be credited
to the special fraud control fund created in section 10.
(l) (k)
The revisions in the penalties in
subsections (a) and
(b) provided by the 1991 amendatory act that added this subsection
shall
apply to conduct that began before April 1, 1992,
but that
continued on or after April 1, 1992, and to conduct that began on
or after April 1, 1992.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) Senate Bill No. 615.
<<
(b)>> Senate Bill No. 614.
Senate Bill No. 613 as amended June 25, 2009
<<(c)>> Senate Bill No. 612.
