2011 House Bill 4408 / Public Act 14

Reduce future unemployment benefits

Introduced in the House

March 9, 2011

Introduced by Rep. Jim Stamas (R-98)

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 Committee on Commerce

March 15, 2011

Reported without amendment

Without amendment and with the recommendation that the bill pass.

March 16, 2011

Amendment offered by Rep. Vicki Barnett (D-37)

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

Substitute offered by Rep. Barb Byrum (D-67)

To replace the previous version of the bill with one that also extends certain unemployment benefits.

The substitute failed by voice vote

March 17, 2011

Passed in the House 79 to 31 (details)

Received in the Senate

March 22, 2011

Referred to the Committee on Economic Development

March 23, 2011

Reported without amendment

With the recommendation that the bill pass.

Amendment offered by Sen. Randy Richardville (R-17)

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

Amendment offered by Sen. John Gleason (D-27)

To increase the amount of additional unemployment benefits paid for each dependent.

The amendment failed 12 to 25 (details)

Motion by Sen. Tupac Hunter (D-5)

That the question be divided and that a separate vote be taken amendment No. 2.

The motion failed 12 to 25 (details)

Amendment offered by Sen. John Gleason (D-27)

To add employer underpayments of unemployment insurance assessments (taxes) as another goal of the proposed anti-fraud measures.

The amendment failed 13 to 24 (details)

Passed in the Senate 24 to 13 (details)

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 <a href="http://www.michiganvotes.org/2002-HB-5763">2002 law</a> 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.

Received in the House

March 23, 2011

Amendment offered by Rep. Barb Byrum (D-67)

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

Amendment offered by Rep. Brandon Dillon (D-75)

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

Amendment offered by Rep. Jon Switalski (D-25)

To add employer underpayments of unemployment insurance assessments (taxes) as another goal of the proposed anti-fraud measures.

The amendment failed by voice vote

Passed in the House 65 to 44 (details)

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 <a href="http://www.michiganvotes.org/2002-HB-5763">2002 law</a> 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.

Signed by Gov. Rick Snyder

March 28, 2011