Sen. Brandenburg legislation would help businesses reduce fraud

LANSING– Legislation designed to reduce fraud passed the Senate Finance Committee on Wednesday, said sponsor Sen. Jack Brandenburg.

“With the burdens of unemployment reduced, and future penalties eliminated, current businesses will have the opportunity to expand and new businesses will be able to open without bearing the burden of past penalties,” said Brandenburg, R- Harrison Township.

Senate Bill 806 includes reforms that will deter fraud, prevent overpayments, and encourage workers to seek employment before exhausting benefits. The bill also limits the ability of a person who was fired for cause or who left a job voluntarily from collecting unemployment benefits.

SB 806 is part of the package that includes SBs 483 and 484 which would repay Michigan’s debt to the federal unemployment insurance system and help to maintain solvency through bonding.

SBs 483 and 484 take advantage of Michigan’s upgraded bond rating in order to foster an environment where jobs can be created and current companies can expand.

If the Legislature does not act, Michigan employers will be faced with a seemingly endless burden of increased taxes, interest and penalties until the federal debt is paid. Without action, Michigan’s trust fund will be indebted to the federal government until 2018 and will not have a sufficient balance until 2022.

This is only one of the many steps the Legislature has taken to make Michigan more business friendly. By impeding fraud, preventing overpayment and encouraging workers to seek employment, Michigan businesses will be able to operate more efficiently,” added Brandenburg.