The bill amends the Michigan Employment Security Act, specifically section 62, to update the procedures for recovering improperly paid unemployment benefits. Key changes include a reduction in the maximum deduction from benefits or wages for repayment from 50% to 20%, and a stipulation that the unemployment insurance agency must issue a determination requiring restitution within three years after a final decision regarding benefit entitlement. Additionally, the agency is prohibited from initiating recovery actions more than three years after the last determination unless the improper payments were due to suspected identity fraud. The bill also introduces provisions for waiving repayment under certain conditions, such as administrative errors or if repayment would be contrary to equity and good conscience.

Furthermore, the bill mandates that the unemployment insurance agency must provide a written report annually detailing the waivers granted and denied, as well as the total amount of restitution waived. It emphasizes that determinations of intentional false statements or misrepresentations cannot be based solely on discrepancies identified by a computer, requiring a thorough examination of facts by agency personnel. The act is set to take effect 90 days after being enacted into law.

Statutes affected:
House Introduced Bill: 421.62