# Mich. Comp. Laws § 421.2: Declaration of public policy; findings > Michigan · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.2 ## Section - **Citation:** Mich. Comp. Laws § 421.2 - **Heading:** Declaration of public policy; findings - **Jurisdiction:** Michigan - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** MI Code / Chapter 421 / Act Act-1-of-1936-Ex-Sess- / Section 421.2 ## Text Sec. 2. (1) The legislature acting in the exercise of the police power of the state declares that the public policy of the state is as follows: Economic insecurity due to unemployment is a serious menace to the health, morals, and welfare of the people of this state. Involuntary unemployment is a subject of general interest and concern which requires action by the legislature to prevent its spread and to lighten its burden which so often falls with crushing force upon the unemployed worker and his or her family, to the detriment of the welfare of the people of this state. Social security requires protection against this hazard of our economic life. Employers should be encouraged to provide stable employment. The systematic accumulation of funds during periods of employment to provide benefits for periods of unemployment by the setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own, thus maintaining purchasing power and limiting the serious social consequences of relief assistance, is for the public good, and the general welfare of the people of this state. (2) The legislature finds that from time to time high levels of unemployment have resulted in the exhaustion of the funds in this state's account of the unemployment trust fund, has required advances or loans to the state from the federal account of the unemployment trust fund, and has caused the imposition of lawful penalty taxes and solvency taxes to repay those advances and the interest on those advances. The financing and payment of the outstanding principal amount heretofore or hereafter advanced or loaned to this state from the federal account of the unemployment trust fund and the interest on those loans, if any, the funding of unemployment compensation benefits, and the financing and funding of this state's account in the unemployment trust fund including, without limitation, the funding of sufficient fund balances in the unemployment trust fund, are an essential governmental function and public purpose of this state. The legislature further finds that the issuance of bonds by the Michigan finance authority or other issuer to finance the foregoing payments and to avoid or reduce the imposition of penalty taxes and solvency taxes will further and facilitate an essential governmental function and public purpose of this state that will encourage the development of industry and commerce, foster economic growth, provide employment opportunities for the citizens and residents of this state and further other economic development and activities in this state, and in general promote the public health and general welfare of the people of this state. History: 1936, Ex. Sess., Act 1, Imd. Eff. Dec. 24, 1936; CL 1948, 421.2; Am. 2011, Act 268, Imd. Eff. Dec. 19, 2011 ## Nearby sections - [Mich. Comp. Laws § 421.1 Michigan employment security act; short title.](https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.1.md) - [Mich. Comp. Laws § 421.2 Declaration of public policy; findings.](https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.2.md) - [Mich. Comp. Laws § 421.3 Unemployment insurance agency; policies; definitions.](https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.3.md) - [Mich. Comp. Laws § 421.4 Rules; availability to public on request.](https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.4.md) - [Mich. Comp. Laws § 421.5 Unemployment insurance agency; director; duties; annual salary; employees and assistants; delegation of authority; compensation and expenses.](https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.5.md) - [Mich. Comp. Laws § 421.5a Advocacy assistance services; program.](https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.5a.md) - [Mich. Comp. Laws § 421.5b Unemployment insurance agency; director; appointment by governor.](https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.5b.md) - [Mich. Comp. Laws § 421.6a Unemployment insurance agency; writings subject to certain acts; record retention requirements; admissibility of reproduction as evidence.](https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.6a.md) - [Mich. Comp. Laws § 421.8 Legislative purpose; annual review of maximum weekly benefit rates; comparison of consumers' price index; determining percentage of increase or decrease; report.](https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.8.md) - [Mich. Comp. Laws § 421.9 Unemployment insurance agency; subpoenas, issuance; enforcement; immunity.](https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.9.md) - [Mich. Comp. Laws § 421.10 Administration fund; contingent fund.](https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.10.md) - [Mich. Comp. Laws § 421.10a Obligation trust fund; creation; receipt and deposit of money or other assets; investment; money remaining in fund; administrator; expenditures; purpose.](https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.10a.md) - [Mich. Comp. Laws § 421.11 Unemployment agency; cooperation with federal agency; reports; compliance with federal regulations; "social security act" defined; disclosure of information; reciprocal agreements.](https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.11.md) - [Mich. Comp. Laws § 421.11a Privilege; waiver.](https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.11a.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MI_C421_AAct-1-of-1936-Ex-Sess-_S421.2. Check the current official text before relying on it. Not legal advice.