The bill amends the Michigan Employment Security Act, specifically section 62, to clarify the procedures for recovering improperly paid unemployment benefits. It allows the unemployment insurance agency to recover benefits deemed improperly received through various methods, including deductions from future benefits, cash payments, or tax refund deductions. The agency is required to issue a restitution determination within three years of the final decision regarding benefit entitlement. Additionally, the bill stipulates that recovery actions cannot be initiated more than three years after the last determination unless the case involves identity fraud. It also introduces provisions for waiving recovery of benefits if repayment would be contrary to equity and good conscience, detailing specific conditions under which waivers may be granted.

Furthermore, the bill establishes that if a claimant is found to have intentionally made false statements or concealed information to obtain benefits, their rights to benefits for that year will be canceled, and they may face additional restitution requirements. The unemployment insurance agency is tasked with ensuring all improperly obtained benefits are recovered and may conduct an amnesty program to waive penalties for individuals who pay restitution within a specified period. The agency is also required to provide annual reports on waiver applications and outcomes to legislative committees, ensuring transparency in the process.

Statutes affected:
House Introduced Bill: 421.62