2003 House Bill 4945 / Public Act 174

Introduced in the House

July 2, 2003

Introduced by Rep. Barbara Farrah (D-13)

To add a new “trigger” for the payment of extended unemployment insurance benefits. The new trigger would be when, over the preceding 13 weeks, the state unemployment rate is more than 6.5 percent, and is also 10 percent higher than the same period in either of the preceding two years. Under current law, the two existing extended benefit “triggers” are when the U.S. Secretary of Labor calls for them (a national "on" indicator), or when for the last thirteen weeks the insured unemployment rate in Michigan is more five percent, and is also 20 percent higher than the combined average rate over the same thirteen-week periods in each of the preceding two years. Also, under current law, the triggers are based on the unemployment rate among individuals who had been employed in the past. The bill would change this to include new job seekers in the basis used to calculate the rate.

Referred to the Committee on Employee Relations, Training, and Safety

July 15, 2003

Substitute offered by Rep. Barbara Farrah (D-13)

To replace the previous version of the bill with one which incorporates technical changes.

The substitute passed by voice vote

Amendment offered by Rep. Barbara Farrah (D-13)

To clarify technical language in provisions contained in the bill.

The amendment passed by voice vote

Amendment offered by Rep. Barbara Farrah (D-13)

The amendment passed by voice vote

Passed in the House 104 to 4 (details)

To add a new “trigger” for the payment of extended unemployment insurance benefits. The bill is designed to garner an additional $180 million in federal money to provide an additional 13 weeks of unemployment insurance benefits to unemployed workers who have reached the end of their 26 weeks of benefits. The state would be required to pay out $26 million from its own Unemployment Trust Fund, which consists of contributions made by Michigan employers. The new trigger would be when, over the preceding 13 weeks, the state unemployment rate is more than 6.5 percent, and is also 10 percent higher than the same period in either of the preceding two years. Under current law, extended benefits can be triggered by two other alternative formulas. The bill could potentially have an impact on the mandatory unemployment insurance premiums paid by employers.

Received in the Senate

July 16, 2003

Referred to the Committee on Commerce and Labor

Aug. 13, 2003

Reported without amendment

With the recommendation that the bill pass.

Passed in the Senate 38 to 0 (details)

To add a new “trigger” for the payment of extended unemployment insurance benefits. The bill is designed to garner an additional $180 million in federal money to provide an additional 13 weeks of unemployment insurance benefits to unemployed workers who have reached the end of their 26 weeks of benefits. The state would be required to pay out $26 million from its own Unemployment Trust Fund, which consists of contributions made by Michigan employers. The new trigger would be when, over the preceding 13 weeks, the state unemployment rate is more than 6.5 percent, and is also 10 percent higher than the same period in either of the preceding two years. Under current law, extended benefits can be triggered by two other alternative formulas. The bill could potentially have an impact on the mandatory unemployment insurance premiums paid by employers.

Signed by Gov. Jennifer Granholm

Aug. 14, 2003