WeVote
Log In

Bill

WeVote Research Nonpartisan
Bill Summary · SB 700

Summary of Senate Bill 700 (SB 700)

Bill Number: SB 700
Title: Employment security: benefits; time period to recover improperly paid benefits; limit to not more than 3 years after the date the benefit is paid and require recovery waiver of certain benefits.
Introduced: November 06, 2025
Status: Referred to Committee of the Whole
Sponsor: Senator Darrin Camilleri
Cosponsor: John Cherry
Committee: Labor

Purpose and Intent

Senate Bill 700 aims to amend the Michigan Employment Security Act to establish clearer guidelines regarding the recovery of improperly paid unemployment benefits. The bill seeks to protect individuals from the retroactive recovery of benefits that were paid in error, particularly during the COVID-19 pandemic, and to streamline the process for waiving recovery of such benefits under certain conditions.

Key Provisions

  1. Time Limitation on Recovery:

    • The Unemployment Insurance Agency (UIA) is prohibited from recovering improperly paid benefits more than three years after the date the benefit was paid for claims made on or after the bill's effective date.

  2. Waiver of Recovery for Specific Period:

    • Benefits paid between February 7, 2020, and September 5, 2021, will be considered as resulting from an administrative or clerical error by the UIA. Recovery of these benefits will be waived unless there is a final determination of fraud or identity fraud.

  3. Conditions for Waiving Recovery:

    • Recovery of improperly paid benefits will be waived if repayment would be contrary to equity and good conscience, which includes:
      • Administrative or clerical errors by the UIA.
      • Claimants providing incorrect wage information without intent to misrepresent.
      • Claimants whose household income is at or below 150% of the federal poverty guidelines.

  4. Exclusions:

    • The bill specifies that waivers do not apply in cases of intentional false statements, misrepresentation, or concealment of material information.

Impact

  • Affected Parties:

    • The bill primarily affects individuals who received unemployment benefits during the specified period and the UIA's ability to recover funds.

  • Fiscal Impact:

    • The UIA may experience savings by limiting the recovery period, potentially reducing ongoing administrative costs. However, there may be a reduction in penalty and interest revenue if fraud cases that could have been recovered are over three years old.

Procedural Aspects

  • The bill was reported favorably without amendment on November 12, 2025, and is currently under consideration by the Committee of the Whole.
  • The effective date of the bill will be determined upon its passage.

Conclusion

Senate Bill 700 represents a significant shift in the administration of unemployment benefits in Michigan, providing protections for claimants against the recovery of improperly paid benefits while also addressing the operational challenges faced by the UIA. The bill aims to ensure fairness and equity in the unemployment insurance system, particularly in the wake of the disruptions caused by the pandemic.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.