HB 6314

HOUSE BILL NO. 6314
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending section 54b (MCL 421.54b), as amended by
1993 PA 276.
the people of the state of michigan enact:
Sec. 54b. (1) An employing unit or an officer or agent
of an employing unit, a claimant for unemployment benefits, an employee of the commission, unemployment
insurance agency, or a third party that has
conspired knowingly, intentionally, or with
reckless disregard for the legality of the conduct, participates in a
conspiracy with 1 or more persons to commit an offense prohibited by this
act or to commit an act otherwise permitted by this
act in an illegal manner, shall be including
conduct carried out through electronic, digital, automated, or technological
means, or through the use of stolen, misappropriated, or unlawfully obtained
personal identifying information, or by knowingly facilitating, enabling,
directing, or materially assisting such conduct, is guilty of conspiracy
punishable by 1 or more of the following:
(a) If the commission unemployment
insurance agency determines that an individual conspired to commit an illegal
act under this act, the commission unemployment insurance agency may recover the amount
of money so obtained or withheld from payment
or that was attempted to be obtained or withheld from
payment as a result of the illegal act , and may also recover damages equal to 3 times
that amount.
(b) The commission unemployment
insurance agency may refer the matter to the prosecuting attorney of the
county in which the alleged violation occurred for prosecution. If the commission unemployment
insurance agency has not made its own determination under subdivision
(a), the penalty sought by the prosecutor shall must include the amount described in subdivision (a)
and shall also include 1 or more of the
following penalties:
(i) If the amount obtained or withheld from
payment as a result of the conspiracy is $25,000.00 or less, then 1 of the
following:
(A) Imprisonment
for not more than 2 years.
(B) The performance
of community service of not more than 2 years but not to exceed 4,160 hours.
(C) A combination
of sub-subparagraphs (A) and (B) that does not
exceed 2 years.
(ii) If the amount obtained or withheld from
payment as a result of the conspiracy is more than $25,000.00, then 1 of the
following:
(A) Imprisonment
for not more than 5 years.
(B) The performance
of community service of not more than 5 years but not to exceed 10,400 hours.
(C) A combination
of sub-subparagraphs (A) and (B) that does not
exceed 5 years.
(iii) If a the conspiracy to obtain or withhold an amount from payment
is attempted but does not result in a loss to
the commission, unemployment
insurance agency, then both a fine equal to 3 times the amount involved
in the conspiracy, but not less than $1,000.00,
and 1 of the following:
(A) Imprisonment
for not more than 2 years.
(B) The performance
of community service for not more than 2 years but not to exceed 4,160 hours.
(C) A combination
of sub-subparagraphs (A) and (B) that does not
exceed 2 years.
(2) This section shall apply even applies
regardless of if the amount obtained or withheld from payment has been is repaid,
partially repaid, reported, corrected,
or reported and paid disclosed by an individual involved in a conspiracy before or after the unemployment insurance agency detects
the conspiracy.
(3) A person may be found to be in violation of this section regardless
of if a conspiracy results in payment to the person if the person knowingly
attempts, facilitates, aids, abets, or materially assists a conspiracy
prohibited under this act.
(4) (3) This section applies to conduct that began
before April 1, 1992 but that continued on or after April 1, 1992 and to
conduct that began on or after April 1, 1992.
(5) This section as amended by the amendatory act that added this
sentence applies to conduct that began on or after the effective date of that
amendatory act.
(6) (4) The
penalties provided in this section shall be are in addition to any penalty provided in this act
for a late filing.
(7)  (5) If
a determination is made that an individual has violated this section, the
individual is subject to the penalty provisions of this section and, where
applicable, the requirements of under section 62.
(8) (6) The
amount recovered by the commission pursuant to unemployment insurance agency under subsection (1) shall must be
credited first to the unemployment compensation fund and thereafter amounts
recovered that are in excess of the amounts obtained or withheld as a result of
the conspiracy shall must be credited to the penalty and interest account
of the contingent fund.
(7) This section shall take effect April 1, 1992.