Senate Bill 539 Summary

• Amends the Michigan Employment Security Act to change "shall" to "must" throughout Section 15 for clarity and modernizes statutory language regarding contributions, penalties, and collection procedures.

• Limits interest on unpaid contributions and benefit overpayments to 50% of the amount due, prohibits interest on penalties, and allows the unemployment agency to cancel interest and penalties when failure to pay was not due to negligence, intentional disregard, or fraud.

• Restricts assessments against claimants, unemployment agency employees, and third parties to penalties for violations of specific fraud sections, while maintaining full assessment authority against employers for contributions and reimbursement payments.

• Adds new requirements for business transfers including a mandatory disclosure form showing the transferor's unemployment tax liability, tax history, employee information, and separation records at least 2 business days before offer acceptance; imposes criminal penalties for false disclosure.

• Requires the unemployment agency to provide an annual written report to the legislature beginning January 1, 2018, detailing delinquent contribution procedures, recovery statistics, money recovered, fund impact estimates, and staffing dedicated to collections.