Employment security: benefits; time period to recover improperly paid benefits; limit to not more than 3 years after the date the benefit is paid and require recovery waiver of certain benefits. Amends sec. 62 of 1936 (Ex Sess) PA 1 (MCL 421.62).
Summary
SB 700 amends Michigan’s Employment Security Act to change how the Unemployment Insurance Agency (UIA) recovers overpaid unemployment benefits and when those recoveries must stop. The bill generally sets a three-year limit for issuing restitution determinations and for starting administrative or court recovery actions, with an exception for suspected identity fraud. It also requires the UIA to consider waiver eligibility before beginning recovery and to notify claimants of waiver rights, appeal rights, and the overpayment issue involved.
The bill expands and clarifies waiver protections for certain overpayments. Recovery must be waived when repayment would be contrary to equity and good conscience, including cases involving innocent wage-reporting errors, low-income households, administrative or clerical UIA errors, and certain older claims where three years have passed since the end of the benefit year. It also preserves stronger penalties for intentional false statements, misrepresentation, concealment of material information, and fraud, including cancellation of benefit rights, additional liability, and removal of the 50% limit on repayment deductions for those cases.
Impact
The bill would amend section 62 of the Michigan Employment Security Act, MCL 421.62, by imposing new time limits on overpayment recovery, expanding mandatory waiver categories, and requiring the UIA to provide more detailed notices before collection begins. It affects unemployment claimants, employers involved in wage reporting disputes, and the UIA’s collection and adjudication procedures. The bill also requires annual reporting to legislative committees on waiver activity and preserves the agency’s authority to recover interest and penalties in fraud-related cases.
Sentiment
The available voting history suggests strong support for the bill. It was reported favorably without amendment in committee and then passed the Senate unanimously, 35-0. No committee transcript is available, so the record does not show detailed debate, but the vote pattern indicates broad agreement on limiting stale overpayment collections and improving waiver protections for claimants.
Contention
The main policy tension in the bill is between protecting claimants from long-delayed or agency-caused overpayment recovery and preserving enforcement tools against fraud and intentional misrepresentation. Support for the bill appears to center on fairness, due process, and relief for low-income claimants or those overpaid because of UIA or employer errors. The likely points of concern are the retroactive waiver provision, the expanded hardship and age-based waiver rules, and the limits on how long the UIA can pursue recovery, though the bill retains stronger remedies for fraud, identity fraud, and intentional deception.