HB-5437, As Passed Senate, December 13, 2012

SUBSTITUTE FOR

HOUSE BILL NO. 5437

     A bill to amend 1972 PA 239, entitled

"McCauley-Traxler-Law-Bowman-McNeely lottery act,"

by amending section 32 (MCL 432.32), as amended by 1996 PA 13.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 32. (1) Before payment of a prize of $1,000.00 or more,

the bureau shall determine whether the both of the following:

     (a) Whether department of treasury records show that a the

lottery winner has a current liability to this state or a support

arrearage.

     (b) Whether unemployment insurance agency records show that

the lottery winner has any current liability for restitution of

unemployment benefits, penalty, or interest under section 15 of the

Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.15.

     (2) The department of treasury shall provide the bureau with a

list or computer access to a compilation of persons known to the

department to have a current liability to this state, including

delinquent accounts of amounts money due and owing to a court that

have been assigned to the this state for collection, or a support

arrearage. The information shall be updated not less than once a

month.

     (3) If a liability to this state, or a support arrearage, or

an unemployment compensation debt is identified under subsection

(1), the bureau shall ascertain the amount owed from the department

of treasury and first or the unemployment insurance agency, as

applicable.

     (4) After ascertaining the amount owed by the lottery winner

under subsection (3), the bureau shall apply the amount of the

prize as follows:

     (a) First to the any liability to the this state other than

the amount of any an assigned delinquent account of amounts money

due and owing to a court , next or an unemployment compensation

debt.

     (b) Next to the any support arrearage. , and next

     (c) Next to any unemployment compensation debt.

     (d) Next to the any assigned delinquent accounts of amounts

money due and owing to a court. , and the excess,

     (e) The balance, if any, shall be paid to the lottery winner.

(5) (2) A Except for a payment applied to a liability under

subsection (4)(c), a lottery winner shall receive be given notice

and an opportunity for a hearing before the department of treasury

or its designee with respect to the liability to which the prize is

to be applied where if the liability has not been reduced to

judgment or has not been finalized under statutory review

provisions of the statute under which the liability arose. The

notice shall be made given by regular mail. The lottery winner may

request a hearing before the department of treasury within 15 days

of after the date of the notice by making a written request to the

revenue commissioner state treasurer.

(6) (3) An amount applied to pay a support arrearage shall be

paid by the bureau to the department of treasury, which shall pay

the amount to the office of the friend of the court for the

appropriate judicial circuit or to the state disbursement unit in

the same manner as is prescribed for a payment pursuant to an order

of income withholding under section 9 of the support and parenting

time enforcement act, Act No. 295 of the Public Acts of 1982 PA

295, being section MCL 552.609. of the Michigan Compiled Laws.

(7) (4) In regard to the information provided by the

department of treasury to the bureau under this section, the bureau

is subject to the confidentiality restrictions and penalties

provided in section 28(1)(f) and (2) of Act No. 122 of the Public

Acts of 1941 PA 122, being section MCL 205.28. of the Michigan

Compiled Laws. In regard to information provided by the

unemployment insurance agency to the bureau under section 15 of the

Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.15,

the bureau is subject to the confidentiality restrictions and

penalties provided in sections 11 and 54 of the Michigan employment

security act, 1936 (Ex Sess) PA 1, MCL 421.11 and 421.54.

(8) (5) Until October 1, 1995 each office of the friend of the

court may report to the department of treasury the names of persons

who have a current support arrearage. Beginning October 1, 1995

each Each office of the friend of the court shall report to the

office of child support the names of persons who have a current

support arrearage and the office of child support shall provide

that information to the department of treasury.

(9) (6) As used in this section:

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

created in section 3 of the friend of the court act, Act No. 294 of

the Public Acts of 1982 PA 294, being section MCL 552.503. of the

Michigan Compiled Laws.

     (b) "Support" means that term as defined in section 31 2a of

the friend of the court act, Act No. 294 of the Public Acts of 1982

PA 294, being section 552.531 of the Michigan Compiled Laws MCL

552.502a.