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2011 House Bill 4408: Reduce future unemployment benefits

Public Act 14 of 2011

  1. Introduced by Rep. Jim Stamas (R) on March 9, 2011, to create an unemployment benefit system "Special Fraud Control" fund and require amounts recovered for unemployment insurance fraud violations to be deposited into it, to be used to pay for new fraud and overpayment prevention measures and software. The bill would also double the amount of damages that may be recovered for a second or subsequent fraud violation involving less than $500.
    • Referred to the House Commerce Committee on March 9, 2011.
      • Reported in the House on March 15, 2011, without amendment and with the recommendation that the bill pass.
    • Amendment offered by Rep. Vicki Barnett (D) on March 16, 2011, to require rather than allow the state unemployment benefit system to waive any interest on penalties imposed for unintentional false statements by a recipient. The amendment failed by voice vote in the House on March 16, 2011.
    • Substitute offered by Rep. Barb Byrum (D) on March 16, 2011, to replace the previous version of the bill with one that also extends certain unemployment benefits. The substitute failed by voice vote in the House on March 16, 2011.
  2. Passed 79 to 31 in the House on March 17, 2011.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on March 22, 2011.
    • Referred to the Senate Economic Development Committee on March 22, 2011.
      • Reported in the Senate on March 23, 2011, with the recommendation that the bill pass.
    • Amendment offered by Sen. Randy Richardville (R) on March 23, 2011, to use the bill as a "vehicle" to reduce the duration of future unemployment benefit payments, and provide a one-time 20 week extension of payments to current beneficiaries. The amendment passed by voice vote in the Senate on March 23, 2011.
    • Amendment offered by Sen. John Gleason (D) on March 23, 2011, to increase the amount of additional unemployment benefits paid for each dependent. The amendment failed 12 to 25 in the Senate on March 23, 2011.
      Who Voted "Yes" and Who Voted "No"

    • Motion by Sen. Tupac Hunter (D) on March 23, 2011, that the question be divided and that a separate vote be taken amendment No. 2. The motion failed 12 to 25 in the Senate on March 23, 2011.
      Who Voted "Yes" and Who Voted "No"

    • Amendment offered by Sen. John Gleason (D) on March 23, 2011, to add employer underpayments of unemployment insurance assessments (taxes) as another goal of the proposed anti-fraud measures. The amendment failed 13 to 24 in the Senate on March 23, 2011.
      Who Voted "Yes" and Who Voted "No"

  4. Passed 24 to 13 in the Senate on March 23, 2011, to reduce from 26 weeks to 20 weeks the amount of time a laid off employee can collect state unemployment insurance (UI) benefits, beginning in 2012, which reportedly would save the system around $240 million annually. Michigan has borrowed $3.8 billion from the federal government to pay-out benefits boosted by higher unemployment and a 2002 law that boosted benefit levels; repaying the money imposes higher taxes on employers. The bill would also retroactively include current beneficiaries under a 20 week federal benefit extension (from 79 to 99 weeks), and use money recovered from fraud investigations to pay for new fraud and overpayment prevention measures and software.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on March 23, 2011.
    • Amendment offered by Rep. Barb Byrum (D) on March 23, 2011, to strip out the Senate-passed provision reducing from 26 weeks to 20 weeks the amount of time a laid off employee can collect state unemployment insurance (UI) benefits. The amendment failed by voice vote in the House on March 23, 2011.
    • Amendment offered by Rep. Brandon Dillon (D) on March 23, 2011, to limit the Senate-passed reduction in the duration of future unemployment benefits to times when the state unemployment rate is below 4 percent. The amendment failed by voice vote in the House on March 23, 2011.
    • Amendment offered by Rep. Jon Switalski (D) on March 23, 2011, to add employer underpayments of unemployment insurance assessments (taxes) as another goal of the proposed anti-fraud measures. The amendment failed by voice vote in the House on March 23, 2011.
  6. Passed 65 to 44 in the House on March 23, 2011, to reduce from 26 weeks to 20 weeks the amount of time a laid off employee can collect state unemployment insurance (UI) benefits, beginning in 2012, which reportedly would save the system around $240 million annually. Michigan has borrowed $3.8 billion from the federal government to pay-out benefits boosted by higher unemployment and a 2002 law that boosted benefit levels; repaying the money imposes higher taxes on employers. The bill would also retroactively include current beneficiaries under a 20 week federal benefit extension (from 79 to 99 weeks), and use money recovered from fraud investigations to pay for new fraud and overpayment prevention measures and software.
    Who Voted "Yes" and Who Voted "No"

  7. Signed by Gov. Rick Snyder on March 28, 2011.

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