DEDUCT SUPPORT AND OTHER DEBTS
FROM COURT-ORDERED STATE PAYMENTS
House Bill 5511 (Substitute H-1)
Sponsor: Rep. Michael D. McCready
Committee: Families, Children, and Seniors
Complete to 9-8-14
A SUMMARY OF HOUSE BILL 5511 AS REPORTED FROM COMMITTEE
The bill would amend the Revised Judicature Act (MCL 600.6458) to allow for deductions from payments to plaintiffs or claimants in cases where a judgment in the Court of Claims against the state has become final, or upon allowance of a claim by the State Administrative Board.
The bill specifies that deductions would have to be made by the State Treasurer from payments by the state if plaintiffs or claimants are indebted for child, spousal, or maternity support; an amount due the state or a subdivision of the state; or an amount due under a court order for restitution, fines, costs, fees, reimbursements, penalties, or assessments.
The term "support" is imported from the Friend of the Court Act, where it refers to (1) the payment of money for a child or a spouse ordered by the circuit court, including payment of the expenses of medical, dental, and other health care, child care expenses, and educational expenses; and (2) the payment of money ordered by the circuit court under the Paternity Act for the necessary expenses connected to the pregnancy of the mother or the birth of the child, or for the repayment of genetic testing expenses.
The bill applies to judgments and claims against the state, or a department, commission, board, institution, arm, or agency of the state.
Amounts not to be Deducted
Deductions could not be made for attorney fees; court costs and other litigation costs; the Medicaid program, unless Medicaid is subordinated to support under federal law; medical services or a reimbursement for a payment made for medical services; other costs related to the action or claim; vocational rehabilitation costs, reimbursements, or credits incidental to disability programs; or for Medicare set-aside accounts for future medical care or future Medicaid, unless they are subordinated to support under federal law.
Order of Deductions
If the plaintiff or claimant has multiple obligations and if the judgment or claim is insufficient to satisfy the obligations in full, the State Treasurer would pay the obligations in the following order: an amount due to this state; support; an amount due to a subdivision of this state; and amount due under a court order for restitution, fines, costs, fees, reimbursements, penalties, or assessments.
Indebtedness to the State
Under the bill, an amount due to the state or a subdivision of this state only includes an indebtedness that is included in a judgment entered in a court action or a judgment that has been determined by agency action when all administrative and judicial review rights have been exhausted.
Claimant Information
Upon a judgment becoming final or on a claim being allowed and certified to the clerk of the Court of Claims, the plaintiff or claimant would be required to provide to the clerk any information required by the State Treasurer to identify the plaintiff or claimant, or each individual for whose benefit the action was brought or the claim was made, for purposes of implementing the deduction provisions. In turn, the clerk would provide this information to the State Treasurer when certifying a judgment or allowed claim to the treasurer. The treasurer would have to notify the clerk of the Court of Claims of the information needed from a plaintiff or claimant.
Prohibited Disclosure of Identifying Information
The identifying information requirements would notwithstanding any order in an action that prohibits disclosure of the name of a plaintiff, claimant, or individual for whose benefit the action was brought or claim was made. If such a protective order exists, the clerk would be required to notify the State Treasurer when providing the names, and then the identifying information would exempt from disclosure under the Freedom of Information Act.
Enacting Section
The bill would take effect January 1, 2016.
FISCAL IMPACT:
A fiscal analysis is in process.
Fiscal Analyst: Ben Gielczyk
■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.