The bill amends the Michigan Employment Security Act by adding a new section, 32e, which mandates the unemployment insurance agency to implement procedures for electronically accessing specific databases maintained by various state and federal departments. This access must be established within 90 days of the bill's effective date and includes databases from the Department of Health and Human Services, the Department of Corrections, the Department of State, and others, such as the Social Security Administration and the Internal Revenue Service. The purpose of this access is to verify critical information about claimants, including job status, incarceration status, death records, identity, and income.

Additionally, the bill requires the unemployment insurance agency to implement safeguards to protect the accessed data from misuse or unauthorized access, ensuring compliance with established data security policies. An annual report must be submitted to the house and senate appropriations committees detailing the number of fraudulent claims detected, estimated cost savings from these detections, challenges faced in implementation, and recommendations for improvements to strengthen fraud prevention measures.

Statutes affected:
House Introduced Bill: 421.1, 421.75