2002 House Bill 5763 / Public Act 192

Increase unemployment benefits

Introduced in the House

Feb. 28, 2002

Introduced by Rep. Randy Richardville (R-56)

To increase the state maximum weekly unemployment insurance benefit from $300 to $415. The bill would also add a benefit deductible in the form of a one-week waiting period before the first payment. Because of existing delays between a layoff and the first unemployment check this would not necessarily mean a longer wait, but it would mean one less payment to those who are unemployed for less than the maximum 26 weeks of coverage. The bill would consider severance pay in determining when a claimant would first be eligible for benefits. It would also require Indian tribes which are employers to come under the state unemployment insurance system.

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

March 5, 2002

Substitute offered by Rep. Bruce Patterson (R-21)

, that is he moved to return to the Unemployment Relations Committee the version of the bill the committee had reported to the full House earlier the same day. The substitute would have increased the weekly unemployment insurance benefit from $300 to $362, instead of to $415, which is the amount set by the bill as introduced. $362 is the amount the current benefit would be had it kept up with inflation since being set at $300 in 1995. $415 would be a 15-percent increase above the inflation-adjusted level.

The substitute passed by voice vote

March 14, 2002

Substitute offered

To replace the previous version of the bill with one which increases the state maximum weekly unemployment insurance benefit from $300 to $375, eliminates the “waiting week” provision, and requires all beneficiaries to accept alternative work that pays at least 70% of the previous compensation, rather than the current system of a sliding scale of 80-percent dropping to 70-percent depending on how many weeks of benefits have been collected.

The substitute passed by voice vote

Substitute offered by Rep. Jack Minore (D-49)

To replace the previous version of the bill with one which increases the state maximum weekly unemployment insurance benefit from $300 to $415, increases the non-maximum benefit by approximately five percent, does not include a “waiting week” provision, does not consider severance pay in determining when a claimant would first be eligible for benefits, and does not require all beneficiaries to accept alternative work that pays at least 70% of the previous compensation, but instead leaves in place a sliding scale of 80-percent dropping to 70-percent depending on how many weeks of benefits have been collected.

The substitute failed 47 to 56 (details)

Amendment offered by Rep. Rose Bogardus (D-47)

To increase the maximum weekly unemployment insurance benefit from $300 to $415, instead of to $375.

The amendment failed 49 to 54 (details)

Amendment offered by Rep. Virg Bernero (D-68)

To strip out a provision which considers severance pay in determining when a claimant would first be eligible for benefits.

The amendment failed 51 to 51 (details)

Amendment offered by Rep. William O'Neil (D-24)

To increase the non-maximum weekly unemployment insurance benefit by approximately five percent.

The amendment failed 50 to 52 (details)

Amendment offered by Rep. Julie Dennis (D-92)

To increase the cap on the non-maximum aggregate unemployment insurance benefit.

The amendment passed by voice vote

Amendment offered by Rep. David Woodward (D-34)

To make individuals who have been forced to leave work because of domestic violence eligible for unemployment insurance benefits.

The amendment failed 48 to 48 (details)

Amendment offered by Rep. David Woodward (D-34)

To make part time workers eligible for unemployment insurance benefits.

The amendment failed 46 to 54 (details)

Passed in the House 92 to 11 (details)

To increase the state maximum weekly unemployment insurance benefit from $300 to $375. The bill would consider severance pay in determining when a claimant would first be eligible for benefits, and requires all beneficiaries to accept alternative work that pays at least 70% of the previous compensation, rather than the current system of a sliding scale of 80-percent dropping to 70-percent depending on how many weeks of benefits have been collected. Finally, the bill would lower by 80-percent the non-chargeable benefit tax on employers who have had no benefit claims for five or more years. This is a tax for the portion of unemployment insurance benefits and costs which are not attributable to a particular employer (the “socialized costs”).

Received in the Senate

March 14, 2002

March 20, 2002

Substitute offered

To replace the House-passed version of the bill with one that would increase the state maximum weekly unemployment insurance benefit from $300 to $315, and increase the additional dependent benefit from $6 to $20 per person, up to a maximum of five dependents, or a potential total maximum weekly benefit of $415. It would also lower the amount of an employee's pay on which on which the unemployment insurance assessments of employers are based. The substitute was amended to shift the first week's benefits to become the last week’s, so a beneficiary would get one less payment at the start and one more at the end, and to not consider fraudulent claims when assessing an employer’s lay-off record.

The substitute passed by voice vote

Amendment offered by Sen. John Cherry (D-28)

To strip out a provision that would shift the first week's benefits to become the last week’s, so a beneficiary would get one less payment at the start and one more at the end.

The amendment failed 19 to 17 (details)

Substitute offered by Sen. John Cherry (D-28)

To replace the previous version of the bill with one which increases the state maximum weekly unemployment insurance benefit from $300 to $415 increase the additional dependent benefit from $6 to $20 per person, does not include the “waiting week” provision, and indexes the benefit rates to inflation.

The substitute failed 19 to 18 (details)

Amendment offered by Sen. Joe Young, Jr. (D-1)

To increase the non-maximum weekly unemployment insurance benefit by approximately five percent, and strip out a provision which would shift the first week's benefits to become the last week’s, so a beneficiary would get one less payment at the start and one more at the end.

The amendment failed 17 to 20 (details)

Amendment offered by Sen. Bob Emerson (D-29)

To accept a motion that a series of amendments offered by Democratic Senators be considered in a single vote (see roll call number 318, labeled "Young amendment").

The amendment passed 21 to 16 (details)

Passed in the Senate 20 to 17 (details)

To increase the state maximum weekly unemployment insurance benefit from $300 to $315, and increase the additional dependent benefit from $6 to $20 per person, up to a maximum of five dependents, or a potential total maximum weekly benefit of $415. The bill would also lower the amount of an employee's pay on which the unemployment insurance assessments of employers are based, and lower the non-chargeable benefit tax on employers who have had no benefit claims in five or more years. It would consider severance pay in determining when a claimant would first be eligible for benefits, and require a beneficiary to accept alternative work that pays at least 70% of the previous compensation at any time (rather than a sliding scale of 80-percent dropping to 70-percent over time). Finally, the bill would require an Indian tribe which lays off an employee who then collects unemployment insurance benefits to reimburse the state unemployment insurance fund, or alternatively, to regularly contribute to the fund on the same basis as other employers.

Received in the House

March 20, 2002

To not concur with a Senate-passed version of the bill, and sent it to a House-Senate conference committee to work out the differences.

Received

To increase the state maximum weekly unemployment insurance benefit from $300 to $315, and increase the additional dependent benefit from $6 to $20 per person, up to a maximum of five dependents, or a potential total maximum weekly benefit of $415. The bill would also lower the amount of an employee's pay on which the unemployment insurance assessments of employers are based, and lower the non-chargeable benefit tax on employers who have had no benefit claims in five or more years. It would consider severance pay in determining when a claimant would first be eligible for benefits, and require a beneficiary to accept alternative work that pays at least 70% of the previous compensation at any time (rather than a sliding scale of 80-percent dropping to 70-percent over time). Finally, the bill would require an Indian tribe which lays off an employee who then collects unemployment insurance benefits to reimburse the state unemployment insurance fund, or alternatively, to regularly contribute to the fund on the same basis as other employers.

Failed in the House 4 to 94 (details)

To not concur with a Senate-passed version of the bill, and sent it to a House-Senate conference committee to work out the differences.

April 10, 2002

Failed in the House 49 to 55 (details)

The first House-Senate conference committee report, which would increase the weekly maximum unemployment benefit to $415 for the first six weeks a person is out of work, $390 for the next 10 weeks, and $360 for the final 10 weeks. The conference report includes a modified “waiting week,” however a worker who found a new job within four weeks would receive the benefit that would have been paid without the waiting week.

Received in the Senate

April 10, 2002

April 11, 2002

Passed in the Senate 34 to 3 (details)

The second House-Senate conference committee report, which would increase the weekly maximum unemployment benefit from $300 to $362, with no “waiting week.” This final compromise version of the bill contains provisions to consider severance pay in determining when a claimant would first be eligible for benefits, require a beneficiary to accept alternative work that pays at least 70% of the previous compensation at any time (rather than a sliding scale of 80-percent dropping to 70-percent over time). It would also lower the amount of an employee's pay on which the unemployment insurance assessments of employers are based from $9,500 to $9,000, and lower the non-chargeable benefit tax on employers who have had no benefit claims in five or more years.

Received

Received in the House

April 11, 2002

Passed in the House 92 to 13 (details)

Signed by Gov. John Engler

April 26, 2002