SB-1424, As Passed Senate, November 13, 2008

SUBSTITUTE FOR

SENATE BILL NO. 1424

     A bill to amend 1982 PA 295, entitled

"Support and parenting time enforcement act,"

by amending sections 2, 3, 3a, 5b, 5c, 5d, 5e, 7, 8, 9, 11a, 19,

24, 25a, 26b, 28, 29, 30, 31, 33, 35, 39, 44, 45, 46, and 48 (MCL

552.602, 552.603, 552.603a, 552.605b, 552.605c, 552.605d, 552.605e,

552.607, 552.608, 552.609, 552.611a, 552.619, 552.624, 552.625a,

552.626b, 552.628, 552.629, 552.630, 552.631, 552.633, 552.635,

552.639, 552.644, 552.645, 552.646, and 552.648), sections 2 and 3a

as amended by 2004 PA 208, sections 3, 19, and 24 as amended by

2002 PA 572, section 5b as added and section 26b as amended by 2001

PA 106, section 5c as added and section 28 as amended by 2002 PA

565, section 5d as added by 2002 PA 570, section 5e as added by

2004 PA 211, sections 7, 33, and 35 as amended by 2004 PA 206,

section 8 as amended by 1995 PA 236, sections 9, 11a, and 48 as

amended by 1999 PA 160, section 25a as amended by 2004 PA 484,

sections 29 and 30 as amended by 1998 PA 334, section 31 as amended

by 2004 PA 569, and sections 44 and 45 as amended by 2002 PA 568.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2. As used in this act:

     (a) "Account" means any of the following:

     (i) A demand deposit account.

     (ii) A draft account.

     (iii) A checking account.

     (iv) A negotiable order of withdrawal account.

     (v) A share account.

     (vi) A savings account.

     (vii) A time savings account.

     (viii) A mutual fund account.

     (ix) A securities brokerage account.

     (x) A money market account.

     (xi) A retail investment account.

     (b) "Account" does not mean any of the following:

     (i) A trust.

     (ii) An annuity.

     (iii) A qualified individual retirement account.

     (iv) An account covered by the employee retirement income

security act of 1974, Public Law 93-406. , 88 Stat. 829.

     (v) A pension or retirement plan.

     (vi) An insurance policy.

     (c) "Address" means the primary address shown on the records

of a financial institution used by the financial institution to

contact the account holder.

     (d) "Cash" means money or the equivalent of money, such as a

money order, cashier's check, or negotiable check or a payment by

debit or credit card, which equivalent is accepted as cash by the

agency accepting the payment.

     (e) "Custody or parenting time order violation" means an

individual's act or failure to act that interferes with a parent's

right to interact with his or her child in the time, place, and

manner established in the order that governs custody or parenting

time between the parent and the child and to which the individual

accused of interfering is subject.

     (f) "Department" means the family independence agency

department of human services.

     (g) "Domestic relations matter" means a circuit court

proceeding as to child custody or parenting time, or child support,

or spousal support in conjunction with child support, that arises

out of litigation under a statute of this state, including, but not

limited to, the following:

     (i) 1846 RS 84, MCL 552.1 to 552.45.

     (ii) The family support act, 1966 PA 138, MCL 552.451 to

552.459.

     (iii) Child The child custody act of 1970, 1970 PA 91, MCL

722.21 to 722.31.

     (iv) 1968 PA 293, MCL 722.1 to 722.6.

     (v) The paternity act, 1956 PA 205, MCL 722.711 to 722.730.

     (vi) Revised The revised uniform reciprocal enforcement of

support act, 1952 PA 8, MCL 780.151 to 780.183.

     (vii) Uniform The uniform interstate family support act, 1996

PA 310, MCL 552.1101 to 552.1901.

     (h) "Driver's license" means license as that term is defined

in section 25 of the Michigan vehicle code, 1949 PA 300, MCL

257.25.

     (i) "Employer" means an individual, sole proprietorship,

partnership, association, or private or public corporation, the

United States or a federal agency, this state or a political

subdivision of this state, another state or a political subdivision

of another state, or another legal entity that hires and pays an

individual for his or her services.

     (j) "Financial asset" means a deposit, account, money market

fund, stock, bond, or similar instrument.

     (k) "Financial institution" means any of the following:

     (i) A state or national bank.

     (ii) A state or federally chartered savings and loan

association.

     (iii) A state or federally chartered savings bank.

     (iv) A state or federally chartered credit union.

     (v) An insurance company.

     (vi) An entity that offers any of the following to a resident

of this state:

     (A) A mutual fund account.

     (B) A securities brokerage account.

     (C) A money market account.

     (D) A retail investment account.

     (vii) An entity regulated by the securities and exchange

commission that collects funds from the public.

     (viii) An entity that is a member of the national association of

securities dealers and that collects funds from the public.

     (ix) Another entity that collects funds from the public.

     (l) "Friend of the court act" means the friend of the court

act, 1982 PA 294, MCL 552.501 to 552.535.

     (m) "Friend of the court case" means that term as defined in

section 2 of the friend of the court act, MCL 552.502. The term

"friend of the court case", when used in a provision of this act,

is not effective until on and after December 1, 2002.

     (n) "Income" means any of the following:

     (i) Commissions, earnings, salaries, wages, and other income

due or to be due in the future to an individual from his or her

employer and or a successor employers employer.

     (ii) A payment due or to be due in the future to an individual

from a profit-sharing plan, a pension plan, an insurance contract,

an annuity, social security, unemployment compensation,

supplemental unemployment benefits, or worker's compensation.

     (iii) An amount of money that is due to an individual as a debt

of another individual, partnership, association, or private or

public corporation, the United States or a federal agency, this

state or a political subdivision of this state, another state or a

political subdivision of another state, or another legal entity

that is indebted to the individual.

     (o) "Insurer" means an insurer, health maintenance

organization, health care corporation, or other group, plan, or

entity that provides health care coverage in accordance with any of

the following acts:

     (i) Public The public health code, 1978 PA 368, MCL 333.1101 to

333.25211.

     (ii) The insurance code of 1956, 1956 PA 218, MCL 500.100 to

500.8302.

     (iii) The nonprofit health care corporation reform act, 1980 PA

350, MCL 550.1101 to 550.1704.

     (p) "Medical assistance" means medical assistance as

established under title XIX of the social security act, chapter

531, 49 Stat. 620, 42 USC 1396 to 1396r-6 and 1396r-8 to 1396v.

     (q) "Most recent semiannual obligation" means the total amount

of current child support owed by a parent during the preceding

January 1 to June 30 or July 1 to December 31.

     (r) "Occupational license" means a certificate, registration,

or license issued by a state department, bureau, or agency that has

regulatory authority over an individual that allows an individual

to legally engage in a regulated occupation or that allows the

individual to use a specific title in the practice of an

occupation, profession, or vocation.

     (s) "Office of child support" means the office of child

support established in section 2 of the office of child support

act, 1971 PA 174, MCL 400.232.

     (t) "Office of the friend of the court" means an agency

created in section 3 of the friend of the court act, MCL 552.503.

     (u) "Order of income withholding" means an order entered by

the circuit court providing for the withholding of a payer's income

to enforce a support order under this act.

     (v) "Payer" means an individual who is ordered by the circuit

court to pay support.

     (w) "Person" means an individual, partnership, corporation,

association, governmental entity, or other legal entity.

     (x) "Plan administrator" means that term as used in relation

to a group health plan under section 609 of title I of the employee

retirement income security act of 1974, Public Law 93-406, 29 USC

1169, if the health care coverage plan of the individual who is

responsible for providing a child with health care coverage is

subject to that act.

     (y) "Political subdivision" means a county, city, village,

township, educational institution, school district, or special

district or authority of this state or of a local unit of

government.

     (z) "Recipient of support" means the following:

     (i) The spouse, if the support order orders spousal support.

     (ii) The custodial parent or guardian, if the support order

orders support for a minor child or a child who is 18 years of age

or older.

     (iii) The department, if support has been assigned to that

department.

     (iv) The county, if the minor child is in county-funded foster

care.

     (aa) "Recreational or sporting license" means a hunting,

fishing, or fur harvester's license issued under the natural

resources and environmental protection act, 1994 PA 451, MCL

324.101 to 324.90106, but does not include a commercial fishing

license or permit issued under part 473 of the natural resources

and environmental protection act, 1994 PA 451, MCL 324.47301 to

324.47362.

     (bb) "Referee" means a person who is designated as a referee

under the friend of the court act.

     (cc) "Source of income" means an employer or successor

employer, a labor organization, or another individual or entity

that owes or will owe income to the payer.

     (dd) "State disbursement unit" or "SDU" means the entity

established in section 6 of the office of child support act, 1971

PA 174, MCL 400.236.

     (ee) "State friend of the court bureau" means that bureau as

created in the state court administrative office under section 19

of the friend of the court act, MCL 552.519.

     (ff) "Support" means all of the following:

     (i) The payment of money for a child or a spouse ordered by the

circuit court, whether the order is embodied in an interim,

temporary, permanent, or modified order or judgment. Support may

include payment of the expenses of medical, dental, and other

health care, child care expenses, and educational expenses.

     (ii) The payment of money ordered by the circuit court under

the paternity act, 1956 PA 205, MCL 722.711 to 722.730, for the

necessary expenses incurred by or for the mother in connection with

her confinement, for other expenses in connection with the

connected to the mother's pregnancy of the mother or the birth of

the child, or for the repayment of genetic testing expenses.

     (iii) A surcharge under section 3a.

     (gg) "Support order" means an order entered by the circuit

court for the payment of support, whether or not a sum certain.

     (hh) "Title IV-D" means part D of title IV of the social

security act, chapter 531, 49 Stat. 620, 42 USC 651 to 655, 656 to

657, 658a to 660, and 663 to 669b.

     (ii) "Title IV-D agency" means the agency in this state

performing the functions under title IV-D and includes a person

performing those functions under contract, including an office of

the friend of the court or a prosecuting attorney.

     (jj) "Work activity" means any of the following:

     (i) Unsubsidized employment.

     (ii) Subsidized private sector employment.

     (iii) Subsidized public sector employment.

     (iv) Work experience, including work associated with the

refurbishing of publicly assisted housing, if sufficient private

sector employment is not available.

     (v) On-the-job training.

     (vi) Referral to and participation in the work first program

prescribed in the social welfare act, 1939 PA 280, MCL 400.1 to

400.119b, or other job search and job readiness assistance.

     (vii) Community A community service programs program.

     (viii) Vocational educational training, not to exceed 12 months

with respect to an individual.

     (ix) Job skills training directly related to employment.

     (x) Education directly related to employment, in the case of

an individual who has not received a high school diploma or a

certificate of high school equivalency.

     (xi) Satisfactory attendance at secondary school or in a course

of study leading to a certificate of general equivalence, in the

case of an individual who has not completed secondary school or

received such a certificate.

     (xii) The provisions provision of child care services to an

individual who is participating in a community service program.

     Sec. 3. (1) A support order issued by a court of this state

shall be enforced as provided in this act.

     (2) Except as otherwise provided in this section, a support

order that is part of a judgment or is an order in a domestic

relations matter is a judgment on and after the date the support

amount is due as prescribed in section 5c, with the full force,

effect, and attributes of a judgment of this state, and is not, on

and after the date it is due, subject to retroactive modification.

No additional action is necessary to reduce support to a final

judgment. Retroactive modification of a support payment due under a

support order is permissible with respect to a period during which

there is pending a petition for modification, but only from the

date that notice of the petition was given to the payer or

recipient of support.

     (3) This section does not apply to an ex parte interim support

order or a temporary support order entered under supreme court

rule.

     (4) The office of the friend of the court shall make available

to a payer or payee the forms and instructions described in section

5 of the friend of the court act, MCL 552.505.

     (5) This section does not prohibit a court approved agreement

between the parties to retroactively modify a support order. This

section does not limit other enforcement remedies available under

this or another act.

     (6) Every support order that is part of a judgment issued by a

court of this state or that is an order in a domestic relations

matter shall include all of the following:

     (a) Substantially the following statement: "Except as

otherwise provided in section 3 of the support and parenting time

enforcement act, 1982 PA 295, MCL 552.603, a support order that is

part of a judgment or that is an order in a domestic relations

matter as defined in section 2 of the friend of the court act, 1982

PA 294, MCL 552.502, is a judgment on and after the date each

support payment is due, with the full force, effect, and attributes

of a judgment of this state, and is not, on and after the date it

is due, subject to retroactive modification. A surcharge will may

be added to support amounts that are past due as provided in

section 3a of the support and parenting time enforcement act, 1982

PA 295, MCL 552.603a.".

     (b) Notice informing the payer of the imposition of liens by

operation of law and that the payer's real and personal property

can be encumbered or seized if an arrearage accrues in an amount

greater than the amount of periodic support payments payable under

the payer's support order for the time period specified in the

support and parenting time enforcement act, 1982 PA 295, MCL

552.601 to 552.650 this act.

     (c) Notice that an order for dependent health care coverage

takes effect immediately and that, in a friend of the court case, a

national medical support notice will be sent to the parent's

current and subsequent employers and insurers if appropriate. The

notice shall inform the parent that he or she may contest the

action by requesting a review or hearing concerning availability of

health care coverage at a reasonable cost.

     (7) Each A support order that is an order in a friend of the

court case shall include require each party to provide all of the

following information to the friend of the court in writing:

     (a) A requirement that, within 21 days after the payer or

payee changes his or her residential or mailing address, that

individual report the new address and his or her telephone number

in writing to the friend of the court. A single mailing address for

the party, to which all notices and papers in the case will be

served.

     (b) The party's residential address.

     (c) The party's telephone number.

(d) (b) A requirement that both statement of whether the payer

and or payee notify the office of the friend of the court if he or

she holds an occupational license, and if he or she holds a

driver's license, or recreational license.

(e) (c) The name, address, and telephone number names,

addresses, and telephone numbers of the payer's and payee's current

sources of income.

(f) (d) A requirement that both the payer and payee inform the

office of the friend of the court of his or her The payer's and

payee's social security number numbers and driver's license number

numbers. The requirement of this subdivision to provide a social

security number with the information does not apply to a payer or

payee who demonstrates he or she is exempt under law from obtaining

a social security number or to a payer or payee who for religious

convictions is exempt under law from disclosure of his or her

social security number under these circumstances. The court shall

inform the payer and payee of this possible exemption.

     (e) Notice that an order for dependent health care coverage

takes effect immediately and will be sent to the parent's current

and subsequent employers and insurers if appropriate. The notice

shall inform the parent that he or she may contest the action by

requesting a review or hearing concerning availability of health

care coverage at a reasonable cost.

     (8) A support order that is an order in a friend of the court

case shall include a requirement that if any of the information

provided to the friend of the court under subsection (7) changes,

each party shall notify the friend of the court of the new

information within 21 days after the change. A notice under this

subsection shall be in writing or by any other method allowed under

guidelines established by the state court administrative office or

the supreme court.

     (9) Service of notices or other papers under this act and

under the friend of the court act shall be made by first-class

mail, postage prepaid. If mail is returned as undeliverable from

that address, the friend of the court may change the address

pursuant to guidelines established by the state court

administrative office or the supreme court.

     (10) Unless federal law or regulation requires otherwise, if

mail served under subsection (9) is returned from an address and a

new address has not been established within 21 days after the mail

is returned, the party waives his or her right to notice and the

friend of the court is not obligated to serve any notice or other

paper until the party submits a written change of address to the

friend of the court or until the friend of the court has changed

the address pursuant to subsection (9).

(11) (8) A support order shall not accrue interest.

     (12) If a person fails to comply with the requirements of this

section, the court may impose a fee set pursuant to supreme court

rule or state court administrative office policy. A fee ordered

under this subdivision shall be deposited in the friend of the

court fund created in section 2530 of the revised judicature act of

1961, 1961 PA 236, MCL 600.2530.

     (13) In a proceeding to enforce support, a report, record, or

information from the Michigan child support enforcement system or

the support disbursement unit that relates to paid or unpaid

support is prima facie authentic and may be admitted into evidence

without extrinsic evidence of authenticity.

     Sec. 3a. (1) For a friend of the court case, as of if the

court determines that the payer has failed to pay support under a

support order and the failure was willful, the court may order that

on January 1 and July 1 of each year, a surcharge shall be added to

support payments that are past due as of those dates. The surcharge

shall be calculated at 6-month intervals at an annual rate of

interest equal to 1% plus the average interest rate paid at

auctions of 5-year United States treasury notes during the 6 months

immediately preceding July 1 and January 1, as certified by the

state treasurer. The amount of the surcharge shall not compound.

The amount shown as due and owing on the records of the friend of

the court as of January 1 and July 1 of each year shall be reduced

by an amount equal to 1 month's support for purposes of assessing

the surcharge. A surcharge under this subsection shall not be added

to support ordered under the paternity act, 1956 PA 205, MCL

722.711 to 722.730, for the time period to the date of the support

order. A surcharge ordered by the court shall apply until abated by

the court.

     (2) A surcharge as computed in subsection (1) shall be

assessed on a semiannual cycle on January 1 and July 1 of each year

except as otherwise provided under subsection (3).

     (3) A surcharge shall not be assessed for the current

semiannual cycle for in any of the following circumstances:

     (a) Beginning on July 1, 2005, in cases a case in which the

friend of the court is collecting on a current child support

obligation , and the payer has paid 90% or more of the most recent

semiannual obligation during the semiannual cycle.

     (b) For In a case in which a support order is entered after

the effective date of the amendatory act that added this subsection

July 14, 2004, for any period of time a support order did not exist

when if support is later ordered for that period.

     (c) The surcharge is waived or abated under a court order

under section 3d.

     (4) The A surcharge added under this section shall be

collected and enforced by any means authorized under this act, the

friend of the court act, or another appropriate federal or state

law for the enforcement and collection of child support and paid

through the state disbursement unit.

     (5) A surcharge ordered under this section in an order entered

before the effective date of the amendatory act that added this

subsection is terminated on the effective date of the amendatory

act that added this subsection. Another surcharge shall not be

ordered in the action unless the surcharge is ordered by the court

under subsection (1).

     Sec. 5b. (1) A court that orders child support may order

support for a child after the child reaches 18 years of age as

provided in this section.

     (2) The court may order child support for the time a child is

regularly attending high school on a full-time basis with a

reasonable expectation of completing sufficient credits to graduate

from high school while residing on a full-time basis with the

recipient of support or at an institution, but in no case after the

child reaches 19 years and 6 months of age. A complaint or motion

requesting support as provided in this section may be filed at any

time before the child reaches 19 years and 6 months of age.

     (3) A support order entered under this section shall include a

provision that the support terminates on the last day of a

specified month, regardless of the actual graduation date.

(4) (3) A provision contained in a judgment or an order

entered before October 10, 1990 that provides for the support of a

child after the child reaches 18 years of age, without an agreement

of the parties as described in subsection (4) (5), is valid and

enforceable to the extent the provision provides support for the

child for the time the child is regularly attending high school on

a full-time basis with a reasonable expectation of completing

sufficient credits to graduate from high school while residing on a

full-time basis with the recipient of support or at an institution,

but in no case after the child reaches 19 years and 6 months of

age. This subsection does not require payment of support for a

child after the child reaches 18 years of age for any period

between November 8, 1989 and October 10, 1990, or reimbursement of

support paid between November 8, 1989 and October 10, 1990, in

those judicial circuits that did not enforce support for a child

after the child reached 18 years of age during the period between

November 8, 1989 and October 10, 1990.

(5) (4) A provision contained in a judgment or an order

entered under this act before, on, or after the effective date of

this section September 30, 2001 that provides for the support of a

child after the child reaches 18 years of age is valid and

enforceable if 1 or more of the following apply:

     (a) The provision is contained in the judgment or order by

agreement of the parties as stated in the judgment or order.

     (b) The provision is contained in the judgment or order by

agreement of the parties as evidenced by the approval of the

substance of the judgment or order by the parties or their

attorneys.

     (c) The provision is contained in the judgment or order by

written agreement signed by the parties.

     (d) The provision is contained in the judgment or order by

oral agreement of the parties as stated on the record by the

parties or their attorneys.

     Sec. 5c. (1) All support orders shall be stated in monthly

amounts payable on the first of each month in advance. A support

obligation not paid by the last day of the month in which it

accrues is past due. If a support order does not state the amount

of support as a monthly amount, the support amount stated in the

order shall be converted to a monthly amount using the formula

established by the state court administrative office.

     (2) If payments under a support order are being made in the

amount required, through income withholding, pursuant to an

installment payment order, or otherwise, and there are no

preexisting arrearages, the friend of the court shall not consider

the payer as having an arrearage if a periodic temporary arrearage

is created based upon by the conversion of the monthly support

order to an income withholding order or other payment schedule and

which or results from a divergence between the cycle of payments

under the income withholding or payment schedule and the cycle of

charges.

     (3) If a support order takes effect on other than the first

day of a month, the monthly amount is prorated based on the daily

amount for that month. A monthly support order amount shall not be

prorated for the last month in which the order is in effect.

     (4) If the title IV-D agency receives a support payment that,

at the time of its receipt, exceeds a payer's support amount

payable plus an amount payable under an arrearage payment schedule,

the title IV-D agency shall apply the excess against the payer's

total arrearage accrued under all support orders under which the

payer is obligated. If a balance remains after application against

the total arrearage, the title IV-D agency shall do 1 of the

following:

     (a) If the payer designates the balance as additional support,

immediately disburse that amount to the recipient of support.

     (b) If, at the time the payment is received, the payer is

obligated under a support order for a future support payment and

the balance is less than or equal to the monthly support order

amount, retain the balance and disburse it to the recipient of

support immediately when the amount is payable as support.

     (c) If, at the time the payment is received, the payer is not

obligated for a future support payment, or the payer is obligated

under a support order for a future support payment but the balance

is greater than the monthly support order amount, return the

balance to the payer.

     (5) If a payer has paid money that has not been disbursed to

the payee and the payer is entitled to a refund of all or a portion

of the money because support has been abated in whole or in part,

the refund shall be applied first to any support past due in the

case and then to any past due support the payer owes in another

case. Any balance after the application of the money to support

arrearages shall be refunded to the payer.

     Sec. 5d. (1) On and after the effective date of the amendatory

act that added this section June 1, 2003, each support order the

court enters or modifies shall include substantially the following

provisions:

     (a) If a child for whom support is payable under the order is

under the state's jurisdiction and is placed in foster care, that

support payable under the order is assigned to the department.

     (b) If a child for whom support is payable under the order is

under court jurisdiction and is placed in county-funded foster

care, that support payable under the order is assigned to the

funding county.

(c) (b) For a friend of the court case, substantially the

following statements:

     (i) "The office of the friend of the court may consider the

person legally responsible for the actual care, support, and

maintenance of a child for whom support is ordered as the recipient

of support for the child and may redirect support paid for that

child to that recipient of support, subject to the procedures

prescribed in section 5d of the support and parenting time

enforcement act, 1982 PA 295, MCL 552.605d.".

     (ii) "If the payer resides full-time with a child for whom

support is payable under this order, support for that child abates

in accordance with policies established by the state friend of the

court bureau and subject to the procedures prescribed in section 5d

of the support and parenting time enforcement act, 1982 PA 295, MCL

552.605d.".

     (2) If it is In a friend of the court case, a support order

that was entered before the effective date of the amendatory act

that added this section June 1, 2003 shall be considered to

include, by operation of law, the provisions stated in subsection

(1).

     (3) If a child for whom support is payable under the a support

order is under the state's jurisdiction and is placed in foster

care, support payable under the order is assigned to the

department. If the child is placed in county-funded foster care,

the support payable under the order is assigned to the funding

county. An assignment of support to the department as required by

this subsection has priority over a redirection of support

authorized by this section.

     (4) Subject to subsection (5), for a friend of the court case,

the office of the friend of the court may consider the person

legally responsible for the actual care, support, and maintenance

of a child for whom support is ordered as the recipient of support

for the child and may redirect support paid for that child to that

recipient of support. Subject to subsection (5), the office of the

friend of the court shall abate support under a support order that

is payable as support for a child who resides full-time with the

payer, in accordance with policies established by the state friend

of the court bureau.

     (5) A party to a support order may object to redirection or

abatement of support under this section. Support shall not be

redirected or abated under this section until 21 days after the

office of the friend of the court notifies each party of the

proposed action, advising the party of the right to object. If a

party objects within 21 days after the notification, support shall

not be redirected or abated under this section. After an objection,

the office of the friend of the court shall review the support

order under section 17 of the friend of the court act, 1982 PA 294,

MCL 522.517, or shall notify each party that the party may file a

motion to modify support.

     (6) The state friend of the court bureau may implement

policies to assist offices of the friend of the court in

determining when an office of the friend of the court should give

notice of a proposed redirection or abatement of support under this

section.

     Sec. 5e. (1) A payer who has an arrearage under a support

order may seek relief from the arrearage by complying with the

amnesty under section 3b of the office of child support act, 1971

PA 174, MCL 400.233b, or by filing file a motion with the circuit

court for a payment plan to pay arrearages and to discharge or

abate arrearages. Except as provided in subsection (7)(d), if the

payer files a motion for a payment plan, the court shall approve

the plan after notice and a hearing if it finds by a preponderance

of the evidence that the plan is in the best interest of the

parties and children and that either of the following applies:

     (a) The arrearage is owed to an individual payee and both of

the following:

     (i) The payee has consented to entry of the order under

circumstances that satisfy the court that the payee is not acting

under fear, coercion, or duress.

     (ii) The payer establishes that the arrearage did not arise

from conduct by the payer engaged in exclusively for the purpose of

avoiding a support obligation.

     (b) The arrearage is owed to this state or a political

subdivision of this state, and the payer establishes the following:

     (i) The arrearage did not arise from conduct by the payer

engaged in exclusively for the purpose of avoiding a support

obligation.

     (ii) The payer has no present ability, and will not have an

ability in the foreseeable future, to pay the arrearage absent a

payment plan.

     (iii) The payment plan will pay a reasonable portion of the

arrearage over a reasonable period of time in accordance with the

payer's current ability to pay. A payment plan that does not pay

the entire arrearage shall:

     (A) As to a payer who has an income at or below the poverty

level, require payments for at least 24 months.

     (B) As to a payer who has an income in excess of the poverty

level, require payments for at least 24 months plus 1 additional

month for each $1,000.00 above the poverty level that the payer

earns.

     (iv) The office of child support or its designee has been

served with a copy of the motion at least 56 days before the

hearing.

     (2) When the payer has completed the a plan approved under

subsection (1), the payer shall provide notice to interested

parties and obtain a hearing before the court. If, after notice and

hearing, the court finds that the payer has completed the payment

plan, the court shall enter an order discharging the remaining

arrearage, if any. If the court finds that the payer has

substantially completed the payment plan, the court may enter an

order granting relief appropriate to the circumstances of the case.

     (3) A payment plan may provide for discharge of any portion of

an arrearage that meets the requirements under subsection (2), even

if other portions of the arrearage do not meet those requirements.

     (4) A payment plan under subsection (1) shall provide that

arrearages subject to the payment plan may be reinstated upon

motion and hearing for good cause shown at any time during the

pendency of the payment plan. Good cause includes, but is not

limited to, the payee becoming a recipient of public assistance, or

the payer receiving property sufficient to pay a substantial

portion of the amount discharged, including, but not limited to,

lottery proceeds, other winnings, a settlement under an insurance

policy or a judgment in a civil action, or an inheritance.

     (5) A court shall require conditions in the a payment plan

approved under subsection (1) in addition to the payment of support

that the court determines are in the best interests of a child,

including, but not limited to, any of the following:

     (a) A payer's participation in a parenting program.

     (b) Drug and alcohol counseling.

     (c) Anger management classes or participation in a batterer

intervention program that meets the standards recommended by the

governor's task force on batterer intervention standards.

     (d) Participation in a work program.

     (e) Counseling.

     (f) Continuing compliance with a current support order.

     (6) This section does not modify the right of a party to

receive other child support credits to which the payer is entitled

nor prevent the court from correcting a support order under other

applicable law or court rule.

     (7) In making its findings under subsection (1), the court

shall consider any written comments submitted before the hearing by

the office of child support or its designee. When written comments

have not been submitted, the court may do any of the following:

     (a) Adjourn the hearing to seek written comments before making

its decision.

     (b) Appoint an examiner who shall review the payer's assets

and the plan and make a recommendation concerning the plan or

propose an alternative plan to the court. The examiner shall be

paid by the payer for services provided under terms and conditions

the court establishes separate from any payments made through the

friend of the court or state disbursement unit.

     (c) Appoint a receiver who shall review the payer's assets and

the plan and make a recommendation concerning the plan or propose

an alternative plan to the court. The A receiver shall have

appointed under this subdivision has the powers of a receiver under

all applicable laws and may, at the court's discretion, use the

payer's assets to complete the plan or otherwise monitor the

payer's progress in completing the plan. The receiver shall be paid

by the payer for services provided under terms and conditions the

court establishes separately from any payments made through the

friend of the court or state disbursement unit.

     (d) Approve the plan as presented, but only if the payer

satisfies the requirements of subsection (1) by clear and

convincing evidence.

     (e) Deny the plan as presented if the court finds that the

payer has not satisfied the requirements of subsection (1).

     (8) If the court approves a plan under subsection (1)(b), that

approval shall be considered the state's consent to a compromise of

the arrearage.

     (9) An arrearage subject to a plan under subsection (1) shall

continue to be enforced under this act, the office of child support

act, 1971 PA 174, MCL 400.231 to 400.240, and the friend of the

court act, when if federal or state law requires the enforcement

action. When If federal or state law does not require the

enforcement action, an arrearage subject to a plan under subsection

(1) may continue to be enforced as allowed under this act, the

office of child support act, 1971 PA 174, MCL 400.231 to 400.240,

and the friend of the court act, except that when the payer is

complying with the plan, a referee, judge, or person conducting an

administrative review or hearing as allowed under the acts shall

not allow enforcement to continue when the statute permits the

exercise of discretion in using the enforcement and the payer is

complying with the plan.

     (10) A person who knowingly provides false information on a

motion filed under subsection (1) is guilty of a misdemeanor

punishable by imprisonment for not more than 180 days or a fine of

not more than $1,000.00, or both.

     (11) A title IV-D agency shall comply with the amnesty program

established under section 3b of the office of child support act,

1971 PA 174, MCL 400.233b. If prosecution has been initiated under

section 161, 165, or 167 of the Michigan penal code, 1931 PA 328,

MCL 750.161, 750.165, and 750.167, before the payer seeks

participation in the child support amnesty program or a payment

plan under this section, the individual is not eligible to

participate in the child support amnesty program or a payment plan

under this section.

     Sec. 7. (1) For a friend of the court case, if income

withholding is not immediately effective and the arrearage under a

support order reaches the arrearage amount that requires the

initiation of 1 or more support enforcement measures as provided in

section 11 of the friend of the court act, MCL 552.511, or, if the

amount of income withholding is administratively adjusted for

arrears under section 17e of the friend of the court act, MCL

552.517e, the office of the friend of the court immediately shall

send notice of the arrearage to the payer by ordinary mail to his

or her last known address. The notice to the payer shall contain

the following information:

     (a) The amount of the arrearage.

     (b) One or both of the following:

     (i) That the payer's income is subject to income withholding

and the amount to be withheld.

     (ii) That the payer's income withholding is being

administratively adjusted and the amount of the adjustment.

     (c) That income withholding will be applied to current and

subsequent employers and periods of employment and other sources of

income.

     (d) That the order of income withholding is effective and

notice to withhold income will be sent to the payer's source of

income.

     (e) That the payer may request a hearing under subsection (4)

(3) in writing within 21 days after the date of the notice to

contest the withholding, but only on the grounds that the

withholding is not proper because of a mistake of fact concerning

the amount of current or overdue support or the identity of the

payer, and if the notice includes an administrative adjustment of

arrears, that the administrative adjustment will cause an unjust or

inappropriate result.

     (f) That if the hearing is held before a referee, the payer

has a right to a de novo hearing before a circuit court judge.

     (g) The place where a request for hearing under subsection (4)

(3) shall be filed.

(h) (g) That if the payer believes that the amount of support

should be modified due to a change in circumstances, the payer may

file a petition with the court for modification of the support

order.

     (2) A copy of the notice provided for in subsection (1) shall

be sent by ordinary mail to each recipient of support.

(2) (3) A payer to whom notice is sent under subsection (1),

within 21 days after the date on which the notice was sent, may

request a hearing by filing a request for hearing as provided in

the notice and serving a copy on the other party. A hearing

concerning implementation of income withholding that was not

previously effective may be requested only on the grounds that the

withholding is not proper because of a mistake of fact concerning

the amount of current or overdue support or the identity of the

payer.

(3) (4) If a payer requests a hearing under subsection (3)

(2), the notice and request shall be filed with the court clerk as

a motion contesting the proposed action and a referee or circuit

judge shall hold a hearing within 14 days after the date of the

request. If at the hearing the payer establishes that the

withholding is not proper because of a mistake of fact concerning

the amount of current or overdue support or the identity of the

payer, or that periodic implementation of an administrative

adjustment of the amount of the periodic payment of arrears to be

withheld will cause an unjust or inappropriate result, the income

withholding shall be modified or rescinded according to the

guidelines established under section 19 of the friend of the court

act, MCL 552.519.

(4) (5) If the hearing provided under subsection (4) (3) is

held before a referee, either party may request a de novo hearing

as provided in section 7 of the friend of the court act, MCL

552.507.

(5) (6) If a petition for modification of the support order is

filed by or on behalf of a payer and is pending at the date

scheduled for a hearing under subsection (4) (3), the court may

consolidate the hearing under subsection (4) (3) and a hearing on

the petition for modification.

(6) (7) All proceedings under this section shall be completed

within 45 days after the date that notice was sent under subsection

(1), unless otherwise permitted by the court upon a showing of good

cause.

(7) (8) The friend of the court office may review the

objection administratively before a hearing is held before a

referee or judge. If the friend of the court office reviews the

objection administratively, either party may object and a hearing

shall be held before a referee or judge.

     Sec. 8. The total amount of income withheld under this act

under all orders to withhold income for current support, past due

support, fees, and health care coverage premiums effective against

a payer shall not exceed the maximum amount permitted under section

303(b) of title III of the consumer credit protection act, Public

Law 90-321, 15 U.S.C. 1673 50% of the payer's disposable earnings

as that term is defined in 15 USC 1672.

     Sec. 9. (1) A notice of income withholding entered under this

act shall be served on sources of income as provided in section 11.

The A labor organization that assigns a member to work shall

forward a copy of an income withholding notice served on the labor

organization to the actual employer.

     (2) A notice served under this section shall direct do all of

the following:

     (a) Direct sources of income to withhold from income due the

payer an amount sufficient to meet the payments ordered for

support, and service fees, fines, costs, and sanctions and to

defray arrearages in payments and service fees due at the time the

order of income withholding takes effect. The notice shall also

direct

     (b) Direct that the amount withheld for support, fees, and

health care coverage premiums, fines, costs, and sanctions as

ordered under the friend of the court act or this act shall not

exceed the amount allowed under section 303(b) of title III of the

consumer credit protection act, Public Law 90-321, 15 U.S.C. 1673

50% of the payer's disposable earnings as that term is defined in

15 USC 1672. The notice shall contain

     (c) Contain a statement of the requirements of sections 11,

11a, 12, 13, 14, and 23. The notice shall also direct

     (d) Direct that income withheld under the notice for support

and fees shall be paid to the office of the friend of the court or

to the state disbursement unit, as appropriate, within 3 days after

the date of the withholding.

     (3) A person that serves a notice of income withholding under

this section shall send separate notices for income withholding for

support, fees, fines, costs, and sanctions ordered to be paid under

title IV-D and support, fees, fines, costs, and sanctions not

ordered to be paid under title IV-D.

     Sec. 11a. (1) If there is more than 1 order to withhold income

for support, fees, or health care coverage premiums against a payer

or parent under this act, the source of income shall comply with

all of the notices to withhold income to the extent that the total

amount withheld from the payer's or parent's income does not exceed

the limits imposed under section 303(b) of title III of the

consumer credit protection act, Public Law 90-321, 15 U.S.C. 1673,

giving 50% of the payer's disposable income as that term is defined

in 15 USC 1672. The source of income shall comply with the notices

as follows:

     (a) If all orders to withhold income are from this state and

the total amount designated in the notices to withhold income for

current and past due support exceeds 50% of the payer's disposable

earnings, the source of income shall withhold an amount equal to

50% of the payer's disposable earnings.

     (b) If 1 or more of the orders to withhold income are from

another state, the source of income shall give priority to amounts

designated in each notice as current support, as follows:

(i) (a) If the total of the amounts designated in the notices

as current support exceeds the amount available for income

withholding 50% of the payer's disposable earnings, then the source

of income shall allocate to each order an amount for current

support equal to the amount designated in the notice as current

support, divided by the total of the amounts designated in the

notices as current support, multiplied by the amount of income

available for income withholding.

(ii) (b) If the total of the amounts designated in the notices

as current support does not exceed the amount available for income

withholding 50% of the payer's disposable earnings, then the source

of income shall pay the amounts designated as current support, and

in addition shall proportionately allocate to each order an amount

for past due support not to exceed the amount designated in the

notice as past due support. This subdivision does not require the

maximum withholding to satisfy past due child or spousal support.

     (c) If the total amounts allocated to current and past due

support do not exceed the amount available for income withholding

50% of the payer's disposable earnings, then the source of income

shall allocate the remaining income to the parent's portion of

health care coverage premiums attributable to coverage of the

children specified in the order if remaining income is sufficient

to cover the cost of the premium. This subdivision does not require

a source of income to pay the parent's portion of health care

coverage premiums.

     (2) A source of income is liable for an amount that the source

knowingly and intentionally fails to withhold from the payer's

income following service on the source of income of a notice of

income withholding, except to the extent that the amount is limited

by subsection (1). and section 303(b) of title III of the consumer

credit protection act, Public Law 90-321, 15 U.S.C. 1673.

     (3) A source of income shall identify each withholding by

payer, payer's social security number, case number numbers, amount

withheld, and the date on which support was withheld from the

payer's income. If the source of income is an employer, it shall

also provide its federal employer identification number. A source

of income may meet the requirements of this subsection through the

use of an automated reporting system established by the SDU.

     (4) A source of income may combine amounts withheld from

payers' incomes in a single payment and separately identify by

payer, social security number, and case number the portion of the

single payment that is attributable to each individual payer.

     Sec. 19. (1) If the court awards to the payer sole custody of

a child for whom the payer has been previously ordered to pay

support and a previously accumulated arrearage under the support

order for that child does not exist, the court shall modify any

existing support order to exclude support ordered to be paid by

that payer for that particular child. If an existing support order

does not provide for support to any other child of whom the payer

does not have custody, for support to a former spouse, or for

payments of confinement or pregnancy or birth expenses, the court

shall terminate the order of income withholding as soon as any

previously accumulated arrearage has been paid.

     (2) The office of the friend of the court shall suspend or

terminate an order of income withholding under any of the following

circumstances:

     (a) The location of the child and custodial parent cannot be

determined for a period of 60 days or more, and the friend of the

court case is being closed.

     (b) The court determines that there is no further support

obligation.

     (c) When otherwise determined by the court, upon a showing of

good cause, and if the court determines that such suspension or

termination is not contrary to the best interests of the child. In

making a determination under this subdivision, the court may

consider the previous payment record of the payer, evidence of the

payer's intent to make regular and timely support payments, and any

other factors considered relevant by the court. However, the

payment of arrearages under the support order shall not be the sole

reason for termination of an order of income withholding.

     (d) The parties enter into a written agreement that is

reviewed and entered in the record by the court that provides for

all of the following:

     (i) The order of income withholding shall be suspended.

     (ii) An alternative payment arrangement.

     (iii) For a friend of the court case, the payer shall keep the

office of the friend of the court informed of both of the

following:

     (A) The name and address of his or her current source of

income.

     (B) Any health care coverage that is available to him or her

as a benefit of employment or that is maintained by him or her; the

name of the insurance company, health care organization, or health

maintenance organization; the policy, certificate, or contract

number; and names and birth dates of the persons for whose benefit

he or she maintains health care coverage under the policy,

certificate, or contract.

     (3) The parties shall not enter into a written agreement under

subsection (2)(d) if either of the following circumstances exists:

     (a) There is a support arrearage.

     (b) An order of income withholding was previously suspended or

terminated and subsequently implemented due to the payer's failure

to pay support.

     (4) If a written agreement is entered into under subsection

(2)(d), the order of income withholding shall take effect when an

arrearage in support payments as agreed to under the written

agreement reaches the arrearage amount that would require the

initiation of 1 or more support enforcement measures if the case

were a friend of the court case, as provided in section 11 of the

friend of the court act, MCL 552.511.

     (5) The court may suspend or terminate an order of income

withholding if the custodial parent moves out of the this state

without court authorization.

     (6) The office of the friend of the court shall promptly

refund money that has been improperly withheld.

     Sec. 24. For a friend of the court case, if the case has not

been designated for offset proceedings by the office of child

support and a support arrearage has accrued that meets the

requirements established by state or federal law, regulation, or

rule, as applicable, the office of the friend of the court may

request the office of child support to initiate offset proceedings

against the delinquent payer's state tax refunds and federal income

tax refunds as provided in section 3a of the office of child

support act, 1971 PA 174, MCL 400.233a.

     Sec. 25a. (1) The amount of past due support that accrues

under a judgment as provided in section 3 or under the law of

another state constitutes a lien in favor of the recipient of

support against the real and personal property of a payer,

including, but not limited to, money to be paid as a distribution

from a decedent's estate; as the result of a claim for negligence,

personal injury, or death; under an arbitration award; under a

settlement of or judgment issued in a civil action; or as

compensation under a worker's compensation order, settlement,

redemption order, or voluntary payment. The lien is effective at

the time that the support is due and unpaid and shall continue

continues until the amount of past due support is paid in full or

the lien is terminated by the title IV-D agency.

     (2) Liens that arise in other states shall be accorded full

faith and credit when the requirements of section 25b or 25c are

met.

     (3) A lien created under subsection (1) is subordinate to a

prior perfected lien. All liens that arise under subsection (1) and

described in subsection (2) have equal priority.

     (4) Before a lien is perfected or levied under this act, the

title IV-D agency shall send a notice to the payer subject to the

support order informing the payer of the imposition of liens by

operation of law and that the payer's real and personal property

can be encumbered or seized if an arrearage accrues in an amount

that exceeds the amount of periodic support payments payable under

the payer's support order for the time period specified in this

act.

     (4) A lien shall not be perfected or levied under this act

unless the title IV-D agency has provided a notice to the payer

that liens exist by operation of law and that the payer's real and

personal property can be encumbered or seized if an arrearage

accrues in an amount that exceeds the periodic support payments

payable under the payer's support order for the time specified in

this act. Notice has been provided if it is in the payer's support

order or if it was mailed to the payer at any time.

     (5) The title IV-D agency or another person required to

provide notice under this section or sections 25b to 25i shall

provide notice by paper, unless the person to be notified agrees to

notice by other means. The title IV-D agency or other person

providing notice under this section or sections 25b to 25i shall

complete and preserve proof of service of the notice in a form that

substantially conforming conforms to the requirements for proof of

service under the Michigan court rules.

     (6) A lien under subsection (1) does not arise against any of

the following:

     (a) A financial asset pledged to a financial institution as

collateral.

     (b) A financial asset to which a financial institution has a

prior right of setoff or other lien.

     (c) Property or an allowance described in sections 2401 to

2404 of the estates and protected individuals code, 1998 PA 386,

MCL 700.2401 to 700.2404.

     (d) Fifty percent of the amount of compensation due to a payer

under a worker's compensation order, settlement, redemption order,

or voluntary payment.

     (e) That portion of money to be paid as a distribution from a

decedent's estate; as the result of a claim for negligence,

personal injury, or death; under an arbitration award; under a

settlement of or judgment issued in a civil action; or as

compensation under a worker's compensation order, settlement,

redemption order, or voluntary payment that is owed for any of the

following:

     (i) Attorney fees.

     (ii) Court costs and other litigation costs, including, but not

limited to, medical examination costs, expenses for reports,

deposition fees, court reporter fees, and record copy fees.

     (iii) The medicaid program under the social welfare act, 1939 PA

280, MCL 400.1 to 400.119b, unless medicaid is subordinated to

child support under federal law.

     (iv) Medical services or a reimbursement for a payment made for

medical services either to or by an insurer, health maintenance

organization, or nonprofit health care corporation. For the

purposes of compensation under a worker's compensation order,

settlement, redemption order, or voluntary payment, as used in this

subparagraph, "medical services" means services as described and

regulated under sections 315 and 319 of the worker's disability

compensation act of 1969, 1969 PA 317, MCL 418.315 and 418.319, and

the rules promulgated under those sections.

     (v) An amount to reimburse an insurance company for the

expense incurred by the insurance company in responding to a lien

and levy under sections 25b to 25i. A reimbursement amount under

this subparagraph shall not exceed the actual expense or $50.00,

whichever is less, for each lien and levy or for each payment under

a lien and levy.

     (vi) Other costs related to the arbitration, civil action, or

worker's compensation order, settlement, redemption order, or

voluntary payment.

     (vii) For reimbursements to which an employer or carrier is

entitled under section 827 of the worker's disability compensation

act of 1969, 1969 PA 317, MCL 418.827.

     (viii) For vocational rehabilitation costs, reimbursements, or

credits incidental to long- or short-term disability programs or to

pension or welfare benefit funds.

     (ix) For a medicare set aside account for future medical care

or for future medicaid, unless medicare or medicaid is subordinated

to child support under federal law.

     (f) Money to be paid under an insurance policy for the repair

or replacement of real or tangible personal property.

     (g) Money to be paid for allowable expenses that are payable

as benefits under section 3107(1)(a) and for expenses under section

3107(1)(c) or (c) of the insurance code of 1956, 1956 PA 218, MCL

500.3107.

     (7) The title IV-D agency does not have the authority to alter

an amount itemized in a redemption order. A lien that arises under

this act and a levy of that lien only affect that portion, as

prescribed in this section, of the payment due the payer under a

redemption order. A carrier shall not use the enforcement of a lien

and levy under this act as the basis for freezing or otherwise

refusing to pay out an amount itemized in a redemption order that

is not affected by the lien and levy under this act.

     (8) As used in this section and sections 25b to 25i:

     (a) "Carrier" means any of the following:

     (i) "Carrier" as that term is defined in section 601 of the

worker's disability compensation act of 1969, 1969 PA 317, MCL

418.601.

     (ii) A fund created under section 501 of the worker's

disability compensation act of 1969, 1969 PA 317, MCL 418.501.

     (iii) The property and casualty guaranty association required to

be maintained by section 7911 of the insurance code of 1956, 1956

PA 218, MCL 500.7911.

     (b) "Insurer" means that term as defined in section 106 of the

insurance code of 1956, 1956 PA 218, MCL 500.106.

     Sec. 26b. (1) An order or notice for dependent health care

coverage entered under this act shall include the information

required in a qualified medical child support order as specified in

section 609 of part 6 of subtitle B of title I of the employee

retirement income security act of 1974, Public Law 93-406, 29

U.S.C. 29 USC 1169, if the health care coverage plan of the

individual who is responsible for providing a child with health

care coverage is subject to that act the employee retirement income

security act of 1974, Public Law 93-406, and shall comply with

standards of the national medical support notice as required to

meet federal law and regulations.

     (2) An order or notice of an order for dependent health care

coverage served on an employer shall direct the employer to

withhold from the employee's income the employee's share, if any,

of premiums for dependent health care coverage and pay that amount

to the insurer or plan administrator. The order or notice shall

also direct that the amount withheld for support, fees, and health

care premiums shall not exceed the amount allowed under section

303(b) of title III of the consumer credit protection act, Public

Law 90-321, 15 U.S.C. 1673 50% of the employee's disposable

earnings as that term is defined in 15 USC 1672.

     (3) An order or notice of an order for dependent health care

coverage under this section may be combined with or accompany an

order or notice of income withholding under section 9.

     Sec. 28. (1) For a friend of the court case, the office of the

friend of the court may petition the court for an order to suspend

a payer's occupational license, driver's license, or recreational

or sporting license, or any combination of the licenses, may be

suspended if all of the following circumstances are true:

     (a) An arrearage has accrued in an amount greater than the

amount of periodic support payments payable for 2 months under the

payer's support order.

     (b) The payer holds an occupational license, driver's license,

or recreational or sporting license or the payer's occupation

requires an occupational license.

(b) (c) An order of income withholding is not applicable or

has been unsuccessful in assuring regular payments on the support

obligation and regular payments on the arrearage.

     (2) An Before seeking the suspension of a license described in

subsection (1), an office of the friend of the court shall not file

a petition as authorized under subsection (1) unless the office

sends send the payer a notice that includes all of the following

information:

     (a) The amount of the arrearage.

     (b) That the payer's occupational license, driver's license,

or recreational or sporting license, or any combination of the

licenses, may be subject to an order of suspension.

     (c) That the a suspension order or notice will be entered and

sent to the licensing agency unless the payer responds by paying

the arrearage or requesting a hearing within 21 days after the date

of mailing the notice.

     (d) That, at the if a hearing is requested, the payer may do

either of the following at the hearing:

     (i) Object to the proposed suspension based on a mistake of

fact concerning the overdue support amount or the payer's identity.

     (ii) Suggest to Ask the court to order a schedule for the

payment of the arrearage.

     (e) That, if the payer believes that the amount of support

ordered should be modified due to a change in circumstances, the

payer may file a petition with the court for modification of the

support order.

     Sec. 29. (1) Within 21 days after the date on which the a

notice described in section 28 is mailed to a payer, the payer may

request a hearing on the proposed suspension. If the payer requests

a hearing within that time, entry of the a suspension order shall

be delayed not be entered and a suspension notice shall not be sent

pending the outcome of the hearing.

     (2) If a payer files a petition for modification of the

support order and the petition is pending at the date scheduled for

a hearing under this section, the court shall consolidate the

hearing under this section and a hearing on the petition for

modification unless the court finds for good cause shown on the

record that the hearings should be held separately. If the court

finds that the hearings should be held separately, the hearing on

the petition for modification shall be held before the hearing

scheduled under this section.

     (3) If, after a hearing under this section, the court

determines that the payer has accrued an arrearage on his or her

support order and that the payer has, or could by the exercise of

due diligence have, the capacity to pay all or some portion of the

amount due, the court shall order the payment of the arrearage, as

reasonable, in 1 or more scheduled installments of a sum certain.

     (4) After 21 days after the date on which the a notice

described in section 28 is sent, the friend of the court shall

notify the secretary of state if the payer has failed to request a

hearing or failed to attend a hearing on the proposed suspension.

On receiving the notice from the friend of the court, the secretary

of state shall suspend the payer's driver's license as provided in

section 321c of the Michigan vehicle code, 1949 PA 300, MCL

257.321c.

     (5) The court may order the suspension of the payer's

occupational license , driver's license, or recreational or

sporting license, or any combination of the licenses included in

the notice under section 28, under either of the following

circumstances:

     (a) The payer fails to pay the arrearage and fails to either

request a hearing as provided in subsection (1) or appear for a

hearing scheduled after such a request.

     (b) The court determines after a hearing that the payer fails

has failed to comply with an arrearage payment schedule ordered

under this section.

     (6) If a court determines that a payer has failed to comply

with an arrearage payment schedule ordered under this section, the

court may direct the friend of the court to notify the secretary of

state of the failure. On receiving the notice from the friend of

the court, the secretary of state shall suspend the payer's

driver's license as provided in section 321c of the Michigan

vehicle code, 1949 PA 300, MCL 257.321c.

     Sec. 30. (1) If the court orders a suspension of an

occupational license, driver's license, or recreational or sporting

license, or any combination of the licenses, under section 29, 33,

35, or 45, the order shall indicate that the licensing agency shall

suspend the license within 7 business days after receipt of the

suspension order, or sooner if required by the act that authorizes

the licensing agency to suspend the license. The office of the

friend of the court shall send a copy of the suspension order to

the licensing agency. If the payer is the subject of a suspension

order under section 29 and has failed to respond in any manner to

the notice given under section 28, the office of the friend of the

court shall not send the suspension order to the licensing agency

until at least 14 days after the date the office first attempts

service of a copy of the order on the payer by personal service or

by registered or certified mail, return receipt requested, with

delivery restricted to the payer.

     (2) After entry of a suspension order is entered or after a

suspension under section 29, a payer may agree to and the court may

order a reasonable schedule for the payment of the arrearage. If

the court orders a schedule for payment of the arrearage, the court

or the friend of the court, as applicable, shall do the following:

     (a) The court shall enter an order rescinding the suspension

order that is effective as provided in section 4 of the regulated

occupation support enforcement act, 1996 PA 236, MCL 338.3434,

section 321c of the Michigan vehicle code, 1949 PA 300, MCL

257.321c, or section 43559 of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.43559. If a

suspension order has been sent, within 7 business days after entry

of the order rescinding the suspension order, the office of the

friend of the court shall send a copy of the order rescinding the

suspension order to the licensing agency.

     (b) The friend of the court, on verification by the clerk of

the court that the driver's license clearance fee required by

section 321c of the Michigan vehicle code, 1949 PA 300, MCL

257.321c, has been paid, shall provide a certificate to the payer

stating that the payer is in compliance with the support order.

     Sec. 31. (1) If a person is ordered to pay support under a

support order and fails or refuses to obey and perform the order,

and if an order of income withholding is inapplicable or

unsuccessful, a recipient of support or the office of the friend of

the court may commence a civil contempt proceeding by filing in the

circuit court a petition for an order to show cause why the

delinquent payer should not be held in contempt. If the payer fails

to appear in response to an order to show cause, the court shall do

1 or more of the following:

     (a) Find the payer in contempt for failure to appear.

     (b) Find the payer in contempt for the reasons stated in the

motion for the show cause hearing.

     (c) Apply an enforcement remedy authorized under this act or

the friend of the court act for the nonpayment of support,

including suspending the payer's occupational license, driver's

license, or recreational or sporting license.

     (d) Issue a bench warrant for the payer's arrest requiring

that the payer be brought before the court without unnecessary

delay for further proceedings in connection with the show cause or

contempt proceedings.

     (e) Adjourn the hearing.

     (f) Dismiss the order to show cause if the court determines

that the payer is not in contempt.

     (g) Enter an order that a law enforcement agency render any

vehicle owned by the payer temporarily inoperable, by booting or

another similar method, subject to release on deposit of an

appropriate bond.

     (h) Place the payer under the supervision of the office for a

term fixed by the court with reasonable conditions, including 1 or

more of the following:

     (i) Participating in a parenting program.

     (ii) Participating in drug or alcohol counseling.

     (iii) Participating in a work program.

     (iv) Seeking employment.

     (v) Participating in other counseling.

     (vi) Continuing compliance with a current support or parenting

time order.

     (vii) Entering into and compliance with an arrearage payment

plan.

     (2) In a bench warrant issued under this section, the court

shall decree that the payer is subject to arrest if apprehended or

detained anywhere in this state and shall require that, upon

arrest, unless the payer deposits a cash performance bond in the

manner required by section 32, the payer shall remain in custody

until the time of the hearing. The court shall specify in the bench

warrant the cash performance bond amount. The court shall set the

cash performance bond at not less than $500.00 or 25% of the

arrearage, whichever is greater. At its own discretion, the court

may set the cash performance bond at an amount up to 100% of the

arrearage and add to the amount of the required deposit the amount

of the costs the court may require under subsection (3). If a payer

is arrested on a felony warrant issued for a violation of section

165 of the Michigan penal code, 1931 PA 328, MCL 750.165, unless

the payer deposits a cash performance bond in the manner required

by section 32, the court shall require that, upon arrest, the payer

remain in custody until the time of the preliminary examination.

Upon notification that a payer who has an outstanding bench warrant

under this section has been arrested or arraigned on a felony

warrant for a violation of section 165 of the Michigan penal code,

1931 PA 328, MCL 750.165, the court may order that the bench

warrant be recalled.

     (3) If the court issues a bench warrant under this section,

except for good cause shown on the record, the court shall order

the payer to pay the costs related to the hearing, the issuance of

the warrant, the arrest, and further any later hearings. Those

costs and costs ordered for failure to appear under section 32 or

44 shall be transmitted to the county treasurer for distribution as

required in section 2530 of the revised judicature act of 1961,

1961 PA 236, MCL 600.2530.

     Sec. 33. (1) The court may find a payer in contempt if the

court finds that the payer is in arrears and if the court is

satisfied that the payer has the capacity to pay out of currently

available resources all or some portion of the amount due under the

support order. In the absence of proofs to the contrary introduced

by the payer, the court shall presume that the payer has currently

available resources equal to 4 weeks of payments under the support

order. The court shall not find that the payer has currently

available resources of more than 4 weeks of payments without proof

of those resources by the office of the friend of the court or the

recipient of support. Upon finding a payer in contempt of court

under this section, the court may immediately enter an order doing

that does 1 or more of the following:

     (a) Committing Commits the payer to the county jail or an

alternative to jail.

     (b) Committing Commits the payer to the county jail or an

alternative to jail with the privilege of leaving the jail or other

place of detention during the hours the court determines, and under

the supervision the court considers, necessary for the purpose of

allowing the payer to go to and return from his or her place of

employment.

     (c) Committing Commits the payer to a penal or correctional

facility in this state that is not operated by the state department

of corrections.

     (d) If the payer holds an occupational license, driver's

license, or recreational or sporting license, conditioning

conditions a suspension of the payer's license, or any combination

of the licenses, upon noncompliance with an order for payment of

the arrearage in 1 or more scheduled installments of a sum certain.

A court shall not order the sanction authorized by this subdivision

unless the court finds that the payer has accrued an arrearage of

support payments in an amount greater than the amount of periodic

support payments payable for 2 months under the payer's support

order.

     (e) Ordering Orders the payer to participate in a work

activity. This subdivision does not alter the court's authority to

include provisions in an order issued under this section concerning

a payer's employment or his or her seeking of employment as that

authority exists on August 10, 1998.

     (f) If available within the court's jurisdiction, order orders

the payer to participate in a community corrections program

established as provided in the community corrections act, 1988 PA

511, MCL 791.401 to 791.414.

     (g) Except as provided by federal law and regulations,

ordering orders the parent to pay a fine of not more than $100.00.

A fine ordered under this subdivision shall be deposited in the

friend of the court fund created in section 2530 of the revised

judicature act of 1961, 1961 PA 236, MCL 600.2530.

     (h) Places the payer under the supervision of the office for a

term fixed by the court with reasonable conditions, including 1 or

more of the following:

     (i) Participating in a parenting program.

     (ii) Participating in drug or alcohol counseling.

     (iii) Participating in a work program.

     (iv) Seeking employment.

     (v) Participating in other counseling.

     (vi) Continuing compliance with a current support or parenting

time order.

     (vii) Entering into and compliance with an arrearage payment

plan.

     (2) If the court enters an order under subsection (1)(d) and

the payer fails to comply with the arrearage payment schedule,

after notice and opportunity for a hearing, the court shall order

suspension of the payer's license or licenses with respect to which

the order under subsection (1)(d) was entered and shall proceed

under section 30.

     Sec. 35. (1) The court may find a payer in contempt if the

court finds that the payer is in arrears and 1 of the following

applies:

     (a) The court is satisfied that by the exercise of diligence

the payer could have the capacity to pay all or some portion of the

amount due under the support order and that the payer fails or

refuses to do so.

     (b) The payer has failed to obtain a source of income and has

failed to participate in a work activity after referral by the

friend of the court.

     (2) Upon finding a payer in contempt of court under this

section, the court shall, absent good cause to the contrary,

immediately order the payer to participate in a work activity and

may also do 1 or more of the following:

     (a) Commit the payer to the county jail or an alternative to

jail with the privilege of leaving the jail or other place of

detention during the hours the court determines, and under the

supervision the court considers, necessary for the purpose of

allowing the payer to participate in a work activity.

     (b) If the payer holds an occupational license, driver's

license, or recreational or sporting license, condition a

suspension of the payer's license, or a combination of the

licenses, upon noncompliance with an order for payment of the

arrearage in 1 or more scheduled installments of a sum certain. A

court shall not order the sanction authorized by this subdivision

unless the court finds that the payer has accrued an arrearage of

support payments in an amount greater than the amount of periodic

support payments payable for 2 months under the payer's support

order.

     (c) If available within the court's jurisdiction, order the

payer to participate in a community corrections program established

as provided in the community corrections act, 1988 PA 511, MCL

791.401 to 791.414.

     (d) Except as provided by federal law and regulations, order

the parent to pay a fine of not more than $100.00. A fine ordered

under this subdivision shall be deposited in the friend of the

court fund created in section 2530 of the revised judicature act of

1961, 1961 PA 236, MCL 600.2530.

     (e) Place the payer under the supervision of the office for a

term fixed by the court with reasonable conditions, including 1 or

more of the following:

     (i) Participating in a parenting program.

     (ii) Participating in drug or alcohol counseling.

     (iii) Participating in a work program.

     (iv) Seeking employment.

     (v) Participating in other counseling.

     (vi) Continuing compliance with a current support or parenting

time order.

     (vii) Entering into and compliance with an arrearage payment

plan.

     (3) Notwithstanding the length of commitment imposed under

this section, the court may release a payer who is unemployed if

committed to a county jail under this section and who finds

employment if either of the following applies:

     (a) The payer is self-employed, completes 2 consecutive weeks

at his or her employment, and makes a support payment as required

by the court.

     (b) The payer is employed and completes 2 consecutive weeks at

his or her employment and an order of income withholding is

effective.

     (4) If the court enters an order under subsection (2)(b) and

the payer fails to comply with the arrearage payment schedule,

after notice and an opportunity for a hearing, the court shall

order suspension of the payer's license or licenses with respect to

which the order under subsection (2)(b) was entered and shall

proceed under section 30.

     Sec. 39. (1) If a payer is committed to jail or an alternative

to jail under section 33(b) or 35(2) 33(1)(b) or 35(2)(a) and

violates the conditions of prescribed by the court, the court shall

commit the payer to the county jail without the privilege provided

under section 33(b) or 35(2) 33(1)(b) or 35(2)(a) for the balance

of the period of the commitment imposed by the court.

     (2) If a payer is committed to jail or an alternative to jail

under section 33(b) or 35(2) 33(1)(b) or 35(2)(a) and fails to

return to the place of confinement within the time prescribed, the

payer shall be considered to have escaped from custody and shall be

guilty of a misdemeanor, punishable by imprisonment for not more

than 1 year.

     Sec. 44. (1) If the office of the friend of the court

determines that a procedure for resolving a parenting time dispute

authorized under section 41 other than a civil contempt proceeding

is unsuccessful in resolving a the parenting time dispute, the

office of the friend of the court shall commence a civil contempt

proceeding to resolve a the dispute concerning parenting time with

a minor child by filing with the circuit court a petition for an

order to show cause why either parent who has violated a parenting

time order should not be held in contempt. The office of the friend

of the court shall notify the parent who is the subject of the

petition. The notice shall include at least all of the following:

     (a) A list of each possible sanction if the parent is found in

contempt.

     (b) The right of the parent to a hearing on a proposed

modification of parenting time if requested within 21 days after

the date of the notice, as provided in section 45.

     (2) If the court finds that either parent has violated a

parenting time order without good cause, the court shall find that

parent in contempt and may do 1 or more of the following:

     (a) Require additional terms and conditions consistent with

the court's parenting time order.

     (b) After notice to both parties and a hearing, if requested

by a party, on a proposed modification of parenting time, modify

the parenting time order to meet the best interests of the child.

     (c) Order that makeup parenting time be provided for the

wrongfully denied parent to take the place of wrongfully denied

parenting time.

     (d) Order the parent to pay a fine of not more than $100.00.

     (e) Commit the parent to the county jail or an alternative to

jail.

     (f) Commit the parent to the county jail or an alternative to

jail with the privilege of leaving the jail or other place of

detention during the hours the court determines necessary, and

under the supervision the court considers necessary, for the

purpose of allowing the parent to go to and return from his or her

place of employment.

     (g) If the parent holds an occupational license, driver's

license, or recreational or sporting license, condition the

suspension of the license, or any combination of the licenses, upon

noncompliance with an order for makeup and ongoing parenting time.

     (h) If available within the court's jurisdiction, order the

parent to participate in a community corrections program

established as provided in the community corrections act, 1988 PA

511, MCL 791.401 to 791.414.

     (i) Place the parent under the supervision of the office for a

term fixed by the court with reasonable conditions, including 1 or

more of the following:

     (i) Participating in a parenting program.

     (ii) Participating in drug or alcohol counseling.

     (iii) Participating in a work program.

     (iv) Seeking employment.

     (v) Participating in other counseling.

     (vi) Continuing compliance with a current support or parenting

time order.

     (vii) Entering into and compliance with an arrearage payment

plan.

     (viii) Facilitating makeup parenting time.

     (3) The court shall state on the record the reason the court

is not ordering a sanction listed in subsection (2)(a) to (h) (2).

For the purpose of subsection (2), "good cause" includes, but is

not limited to, consideration of the safety of a child or party who

is governed by the parenting time order.

     (4) A commitment under subsection (2)(e) or (f) shall not

exceed 45 days for the first finding of contempt or 90 days for

each subsequent finding of contempt. A parent committed under

subsection (2)(e) or (f) shall be released if the court has

reasonable cause to believe that the parent will comply with the

parenting time order.

     (5) If a parent fails to appear in response to an order to

show cause, the court may issue a bench warrant requiring that the

parent be brought before the court without unnecessary delay to

show cause why the parent should not be held in contempt. Except

for good cause shown on the record, the court shall further order

the parent to pay the costs of the hearing, the issuance of the

warrant, the arrest, and further any later hearings, which costs

shall be transmitted to the county treasurer for distribution as

provided in section 31. If the hearing cannot be held immediately

after the parent's arrest, the parent may be released if a bond in

the amount of the fines, costs, and sanctions imposed under this

section and any additional amount the court determines is necessary

to secure the parent's appearance is deposited with the court.

     (6) If the court finds that a party to a parenting time

dispute has acted in bad faith, the court shall order the party to

pay a sanction of not more than $250.00 for the first time the

party is found to have acted in bad faith, not more than $500.00

for the second time, and not more than $1,000.00 for the third or a

subsequent time. A sanction ordered under this subsection shall be

deposited in the friend of the court fund created in section 2530

of the revised judicature act of 1961, 1961 PA 236, MCL 600.2530,

and shall be used to fund services that are not title IV-D

services.

     (7) A fine ordered under subsection (2), costs ordered under

subsection (5), or a sanction ordered under subsection (6) becomes

is a judgment at the time they are ordered the order is entered.

     (8) If the court finds that a party to a parenting time

dispute has acted in bad faith, the court shall order the party to

pay the other party's costs.

     Sec. 45. (1) If the court enters an order under section

44(2)(g) and the parent fails to comply with the makeup and ongoing

parenting time schedule, the court shall find the parent in

contempt and, after notice and an opportunity for a hearing, may

order suspension of suspend the parent's license or licenses with

respect to which the order under section 44(2)(g) was entered and

proceed under section 30.

     (2) After entry of a suspension order under subsection (1), a

parent may agree to a makeup parenting time schedule. The court may

order a makeup parenting time schedule if the parent demonstrates a

good faith effort to comply with the parenting time order. If the

court orders a makeup parenting time schedule, the court or the

friend of the court, as applicable, shall do the following:

     (a) The court shall enter an order rescinding the suspension

order that is effective as provided in section 4 of the regulated

occupation support enforcement act, 1996 PA 236, MCL 338.3434,

section 321c of the Michigan vehicle code, 1949 PA 300, MCL

257.321c, or section 43559 of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.43559. Within 7

business days after entry of the order rescinding the suspension

order, the office of the friend of the court shall send a copy of

the order rescinding the suspension order to the licensing agency.

     (b) The friend of the court, on verification by the clerk of

the court that the driver's license clearance fee required by

section 321c of the Michigan vehicle code, 1949 PA 300, MCL

257.321c, has been paid, shall provide a certificate to the payer

stating that the payer is in compliance with the support order.

     (3) Within 21 days after the date of the notice under section

44, a parent who is notified of a petition to show cause under

section 44 may request a hearing on a proposed modification of

parenting time. The court shall hold the requested hearing unless

the parenting time dispute is resolved by other means. The court

shall combine the hearing prescribed by this subsection with the

hearing on the order to show cause unless the court finds for good

cause shown on the record that the hearings should be held

separately. If the court finds that the hearings should be held

separately, the hearing on a proposed modification of parenting

time shall be held before the hearing on the order to show cause.

     Sec. 46. (1) If a custodial parent is committed to jail or an

alternative to jail under section 44(2)(e) 44(2)(f) and violates

the conditions of ordered by the court, the court shall commit the

person to the county jail without the privilege provided under

section 44(2)(e) 44(2)(f) for the balance of the period of

commitment imposed by the court.

     (2) If a custodial parent is committed to jail or an

alternative to jail under section 44(2)(e) 44(2)(f) and fails to

return to the place of confinement within the time prescribed, the

custodial parent shall be considered to have escaped from custody

and shall be is guilty of a misdemeanor, punishable by imprisonment

for not more than 1 year.

     Sec. 48. The department, the SDU, and each office of the

friend of the court shall cooperate in the transition to state

disbursement unit is responsible for the centralized receipt and

disbursement of support. and fees. An office of the friend of the

court shall may continue to receive and disburse support and fees.

through the transition, based on the schedule developed as required

by section 6 of the office of child support act, 1971 PA 174, MCL

400.236, and modifications to that schedule as the department

considers necessary.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 94th Legislature are

enacted into law:

     (a) Senate Bill No. 1426.

     (b) Senate Bill No. 1428.