HB 6316

HOUSE BILL NO. 6316
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
(MCL 421.1 to 421.75) by adding section 32e.
the people of the state of michigan enact:
Sec. 32e. (1) Not
later than 90 days after the effective date of the amendatory act that added
this section, the unemployment insurance agency shall, in coordination with all
of the following departments, implement procedures to electronically access
certain databases maintained by those departments:
(a) The department of health and human services.
(b) The department of corrections.
(c) The department of state.
(d) Any other federal or state department, including, but not limited
to, the Social Security Administration to review death records and the Internal
Revenue Service to verify a claimant's income.
(2) At the following times, an unemployment insurance agency
representative who examines a claimant's claim under section 32(a) shall
electronically access the relevant department databases described in subsection
(1) to investigate and verify all of the following information about the
claimant:
(a) Before the unemployment insurance agency issues any benefits to the
claimant and at least 1 time per week for the duration that benefits are issued,
all of the following information:
(i) Job status.
(ii) Incarceration
status.
(iii) Death records
status.
(b) Before the unemployment insurance agency issues any benefits to the
claimant and at least 1 time each calendar quarter for the duration that
benefits are issued, both of the following:
(i) Identity.
(ii) Income.
(3) The unemployment insurance agency shall implement reasonable
administrative, technical, and physical safeguards, including, but not limited
to, encryption and access logging, to protect the data
accessed under this section from misuse or unauthorized access or disclosure
of data. The safeguards must comply with the data security policies and
standards established by the department of technology, management, and budget
under section 124 of the management and budget act, 1984 PA 431, MCL 18.1124,
including access restrictions to authorized users and encryption.
(4) The unemployment insurance agency shall submit an annual report to
the house and senate appropriations committees that includes all of the
following related to the requirements of this section:
(a) The number of fraudulent claims the agency detected.
(b) The estimated cost savings to taxpayers as a result of the detected
fraud under subdivision (a).
(c) Implementation challenges related to data access, system
integration, privacy compliance, and coordination with other departments.
(d) Recommendations for legislative or administrative improvements to
strengthen the procedures required under this section and reduce fraud.