The bill amends the Michigan Employment Security Act, specifically section 15, to enhance the assessment and collection processes for unpaid contributions and restitution of benefit overpayments. It establishes that unpaid contributions and restitution will accrue interest at a rate of 1% per month, capped at 50% of the amount due, while clarifying that interest will not be assessed on penalties. The bill also outlines conditions under which the unemployment insurance agency may waive interest on unpaid restitution, particularly in cases of administrative errors or when the overpayment is not the claimant's fault. Additionally, it mandates that the agency notify claimants of any waivers or refunds owed to them.

Furthermore, the bill introduces new provisions for the collection of unpaid contributions and penalties, allowing the unemployment insurance agency to issue assessments and place liens on property for unpaid amounts. It specifies that if an employer defaults on payments, the agency can take legal action to recover the owed amounts, including interest and damages, and emphasizes that contributions and penalties are a first lien on the property of the employer or claimant. The bill also requires transferors and transferees to disclose information regarding unemployment tax liabilities and employee status, with penalties for non-compliance. Notably, it states that no fees or penalties will be assessed on unpaid restitution for benefits improperly paid between February 7, 2020, and December 31, 2026, and includes several insertions of "unemployment insurance" to clarify the agency's role.

Statutes affected:
House Introduced Bill: 421.15