Bill Text: MI SB0615 | 2009-2010 | 95th Legislature | Introduced
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-Introduced.html
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.
(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.____ or House Bill No.____ (request no.
01821'09).
(b) Senate Bill No. 614.
(c) Senate Bill No. 613.
(d) Senate Bill No. 612.
