Bill Text: MI SB0615 | 2009-2010 | 95th Legislature | Engrossed

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Bill Title: Employment security; administration; bureau of worker's and unemployment compensation; establish fraud control fund. Amends sec. 10 of 1936 (Ex Sess) PA 1 (MCL 421.10). TIE BAR WITH: SB 0612'09, SB 0613'09, SB 0614'09

Spectrum: Partisan Bill (Republican 10-0)

Status: (Engrossed - Dead) 2009-06-25 - Referred To Committee On Labor [SB0615 Detail]

Download: Michigan-2009-SB0615-Engrossed.html

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SB-0615, As Passed Senate, June 25, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 615

 

 

May 27, 2009, Introduced by Senators KAHN, PATTERSON, BIRKHOLZ, ALLEN, PAPPAGEORGE, BROWN, JANSEN, CROPSEY, VAN WOERKOM and SANBORN 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 10 (MCL 421.10), as amended by 2003 PA 84.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 10. (1) There is created in the department of treasury a

 

special fund to be known and designated as the administration fund

 

(Michigan employment security act). Any balances in the

 

administration fund at the end of any fiscal year of this state

 

shall be carried over as a part of the administration fund and

 

shall not revert to the general fund of this state. Except as

 

otherwise provided in subsection (3), all money deposited into the

 

administration fund under this act shall be appropriated by the

 

legislature to the unemployment agency to pay the expenses of the

 

administration of this act.

 

     (2) The administration fund shall be credited with all money

 

appropriated to the fund by the legislature, all money received

 

from the United States or any agency of the United States for that

 

purpose, and all money received by this state for the fund. All

 

money in the administration fund that is received from the federal

 

government or any agency of the federal government or that is

 

appropriated by this state for the purposes of this act, except

 

money requisitioned from the account of this state in the

 

unemployment trust fund pursuant to a specific appropriation made

 

by the legislature in accordance with section 903(c)(2) of title IX

 

of the social security act, 42 U.S.C. 1103 USC 1103(c)(2), and with

 

section 17(3)(f), shall be expended solely for the purposes and in

 

the amounts found necessary by the appropriate agency of the United

 

States and the legislature for the proper and efficient

 

administration of this act.

 

     (3) All money requisitioned from the account of this state in

 

the unemployment trust fund pursuant to a specific appropriation

 

made by the legislature in accordance with section 903(c)(2) of

 

title IX of the social security act, 42 U.S.C. 1103 USC 1103(c)(2),

 

and with section 17(3)(f), shall be deposited in the administration

 

fund. Any money that remains unexpended at the close of the 2-year

 

period beginning on the date of enactment of a specific

 

appropriation shall be immediately redeposited with the secretary

 

of the treasury of the United States to the credit of this state's

 

account in the unemployment trust fund; or any money that for any

 

reason cannot be expended or is not to be expended for the purpose

 

for which appropriated before the close of this 2-year period shall

 

be redeposited at the earliest practicable date.

 

     (4) If any money received after June 30, 1941, from the

 

appropriate agency of the United States under title III of the

 

social security act, chapter 531, 49 Stat. 620, 42 U.S.C. USC 501

 

to 504, or any unencumbered balances in the administration fund

 

(Michigan employment security act) as of that date, or any money

 

granted after that date to this state under the Wagner-Peyser act,

 

chapter 49, 48 Stat. 113, or any money made available by this state

 

or its political subdivisions and matched by money granted to this

 

state under the Wagner-Peyser act, chapter 49, 48 Stat. 113, is

 

found by the appropriate agency of the United States, because of

 

any action or contingency, to have been lost or been expended for

 

purposes other than, or in amounts in excess of, those found

 

necessary by that agency of the United States for the proper

 

administration of this act, the money shall be replaced by money

 

appropriated for that purpose from the general funds of this state

 

to the administration fund (Michigan employment security act) for

 

expenditure as provided in this act. Upon receipt of notice of such

 

a finding by the appropriate agency of the United States, the

 

commission shall promptly report the amount required for

 

replacement to the governor and the governor shall, at the earliest

 

opportunity, submit to the legislature a request for the

 

appropriation of that amount. This subsection shall not be

 

construed to relieve this state of its obligation with respect to

 

funds received prior to July 1, 1941, under the provisions of title

 

III of the social security act, chapter 531, 49 Stat. 620, 42

 

U.S.C. USC 501 to 504.

 

     (5) If any funds expended or disbursed by the commission are

 

found by the appropriate agency of the United States to have been

 

lost or expended for purposes other than, or in amounts in excess

 

of, those found necessary by that agency of the United States for

 

the proper administration of this act, and if these funds are

 

replaced as provided in subsection (4) by money appropriated for

 

that purpose from the general fund of this state, then the director

 

who approved the expenditure or disbursement of those funds for

 

those purposes or in those amounts, shall be liable to this state

 

in an amount equal to the sum of money appropriated to replace

 

those funds. The director shall be required by the governor to post

 

a proper bond in a sum not less than $25,000.00 to cover his or her

 

liability as prescribed in this section, the cost of the bond to be

 

paid from the general fund of this state.

 

     (6) There is created in the department of treasury a separate

 

fund to be known as the contingent fund (Michigan employment

 

security act) into which shall be deposited all solvency taxes

 

collected under section 19a and all interest on contributions,

 

penalties, and damages collected under this act. Except as

 

otherwise provided in subsections (7), (8), and (9), and (10), all

 

amounts in the contingent fund (Michigan employment security act)

 

and all earnings on those amounts are continuously appropriated

 

without regard to fiscal year for the administration of the

 

unemployment agency and for the payment of interest on advances

 

from the federal government to the unemployment compensation fund

 

under section 1201 of title XII of the social security act, 42

 

U.S.C. USC 1321, to be expended only if authorized by the

 

unemployment agency. Money deposited from the solvency taxes

 

collected under section 19a shall not be used for the

 

administration of the unemployment agency, except for the repayment

 

of loans from the state treasury and interest on loans made under

 

section 19a(3). However, an authorization or expenditure shall not

 

be made as a substitution for a grant of federal funds or for any

 

portion of a grant that, in the absence of an authorization, would

 

be available to the commission. Immediately upon receipt of

 

administrative grants from the appropriate agency of the United

 

States to cover administrative costs for which the commission has

 

authorized and made expenditures from the contingent fund, those

 

grants shall be transferred to the contingent fund to the extent

 

necessary to reimburse the contingent fund for the amount of those

 

expenditures. Amounts needed to refund interest, damages, and

 

penalties erroneously collected shall be withdrawn and expended for

 

those purposes from the contingent fund upon order of the

 

unemployment agency. Any amount authorized to be expended for

 

administration under this section may be transferred to the

 

administration fund. An amount not needed for the purpose for which

 

authorized shall, upon order of the unemployment agency, be

 

returned to the contingent fund. Amounts needed to refund

 

erroneously collected solvency taxes shall be withdrawn and

 

expended for that purpose upon order of the unemployment agency.

 

     (7) There is created in the department of treasury contingent

 

fund a separate fund to be known as the special fraud control fund

 

(Michigan employment security act). The special fraud control fund

 

shall consist of money collected or received by the unemployment

 

insurance agency as follows:

 

     (a) All interest and penalties collected under section 62.

 

     (b) All gifts to, interest on, or profits earned by the

 

special fraud control fund.

 

     (c) The money in the special fraud control fund is

 

continuously appropriated only to the unemployment insurance agency

 

and may not be transferred or otherwise made available to any other

 

state agency.

 

     (d) All amounts in the special fraud control fund are to be

 

used first for the acquisition of packaged software that has a

 

proven record of success with the detection and collection of

 

unemployment benefit overpayments and then for administrative costs

 

associated with the prevention, discovery, and collection of

 

unemployment benefit overpayments, as included in the biennial

 

budget of the unemployment insurance agency and approved by the

 

legislature. The unemployment insurance agency shall submit a

 

report to the clerk of the house of representatives and the

 

secretary of the senate at the close of the 2-year period that

 

begins on the effective date of the amendatory act that added this

 

subsection, to show how the money from the special fraud control

 

fund was used and the results obtained from the special fraud

 

control fund.

 

     (8) (7) On June 30, 2002, the unemployment agency shall

 

authorize the withdrawal of $79,500,000.00 from the contingent fund

 

(Michigan employment security act) for deposit into the general

 

fund.

 

Senate Bill No. 615 as amended June 25, 2009

 

     (9) (8) At the close of the state fiscal year in 2002 and each

 

year after 2002, all funds in the contingent fund (Michigan

 

employment security act) in excess of $15,000,000.00 shall lapse to

 

the unemployment trust fund.

 

     (10) (9) The unemployment agency shall authorize the

 

withdrawal of $10,000,000.00 from the contingent fund (Michigan

 

employment security act) for deposit into the general fund for the

 

fiscal year ending September 30, 2004.

 

     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. 614.                                   

 

         

 

     <<(b)>> Senate Bill No. 613.                                   

 

         

 

     <<(c)>>Senate Bill No. 612.