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 or wages, cash payments, or tax refund deductions. The agency is required to issue a determination for restitution 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 suspected identity fraud or intentional misrepresentation.

Furthermore, the bill introduces provisions for waiving the recovery of improperly paid benefits under certain conditions, such as when repayment would be contrary to equity and good conscience. It also mandates that the agency must provide a written report annually detailing the waiver applications and outcomes. Importantly, the agency cannot initiate recovery actions until it has reviewed the claimant's eligibility for a waiver and provided necessary information regarding the determination. The bill emphasizes the need for independent verification of claims to prevent wrongful determinations based solely on discrepancies identified by computer systems.

Statutes affected:
House Introduced Bill: 421.62