HB-5511, As Passed House, September 17, 2014

SUBSTITUTE FOR

HOUSE BILL NO. 5511

     A bill to amend 1961 PA 236, entitled

"Revised judicature act of 1961,"

by amending section 6458 (MCL 600.6458), as amended by 2002 PA 429.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 6458. (1) In rendering any a judgment against the this

state, or any a department, commission, board, institution, arm, or

agency of this state, the court of claims shall determine and

specify in that the judgment the department, commission, board,

institution, arm, or agency from whose appropriation that the

judgment shall must be paid.

     (2) Upon any On a judgment against the this state or any a

department, commission, board, institution, arm, or agency of this

state becoming final, or upon on allowance of any a claim by the

state administrative board and upon certification of the claim by

the secretary of the state administrative board to the clerk of the

court of claims, the clerk of the court of claims shall certify to

the state treasurer the fact that that the judgment was entered or

that the claim was allowed and on receiving the certification the

state treasurer shall pay the claim shall thereupon be paid from

the unencumbered appropriation of the department, commission,

board, institution, arm, or agency if the state treasurer

determines the unencumbered appropriation is sufficient for the

payment. In the event that funds are If money is not available to

pay the judgment or allowed claim as provided in this subsection,

the state treasurer shall instruct the clerk of the court of claims

to issue a voucher against an appropriation made by the legislature

for the payment of judgment claims and allowed claims. In the event

that funds are If money is not available to pay the judgment or

allowed claim as provided in this subsection, the state treasurer

shall report that fact , together with and the name of the

claimant, the date of the judgment , date or of the allowance of

the claim by the state administrative board, and the amount shall

be reported of the judgment or allowed claim to the legislature at

its next session, and shall pay the judgment or allowed claim shall

be paid as soon as money is available for that purpose. The clerk

of the court of claims shall not certify any a judgment to the

state treasurer until the period for appeal from that the judgment

shall have has expired, unless written stipulation between the

attorney general and the claimant or his or her attorney, waiving

any right of appeal or new trial, is filed with the clerk of the

court of claims.

     (3) The clerk of the court of claims shall approve vouchers

under the direction of the court for the payment of the several

judgments rendered by the court. All warrants issued in

satisfaction of those judgments rendered by the court of claims

shall be transmitted to the clerk of the court of claims for

distribution; and all warrants issued in satisfaction of claims

allowed by the state administrative board shall be transmitted to

the secretary of the state administrative board for distribution.

     (4) On a judgment described in subsection (2) becoming final

or on a claim being allowed and certified to the clerk of the court

of claims as described in subsection (2), the plaintiff or claimant

shall provide to the defendant against which the judgment was

entered or claim granted any information required by the department

of treasury to identify the plaintiff or claimant or, if

applicable, each individual for whose benefit the action was

brought or the claim made, for purposes of complying with

subsections (5) to (7) or to perform the department of treasury's

duties under subsection (8). The department of treasury shall make

available to departments, commissions, boards, institutions, arms,

and agencies of this state an itemization of the information needed

from a plaintiff or claimant to satisfy this subsection.

     (5) When requesting payment of a judgment or allowed claim

from the department of treasury, the defendant against which the

judgment was entered or claim granted shall provide to the

department of treasury the name of the plaintiff or claimant and

the identifying information provided under subsection (4). If the

plaintiff or claimant brought the action or made the claim in a

representative capacity, the defendant shall provide to the

department of treasury the name and identifying information for

each individual for whose benefit the action was brought or claim

made.

     (6) The department of treasury shall not issue a warrant in

the satisfaction of a judgment or claim until the department of

treasury determines whether the plaintiff or claimant or, if

applicable, individual for whose benefit the action was brought or

claim made has a liability described in subsection (7). If the

department of treasury identifies a liability described in

subsection (7), the department shall first apply the amount of the

judgment or claim as provided in subsection (7), and the excess, if

any, shall be paid to satisfy the judgment or claim.

     (7) The amount of a judgment or claim described in subsection

(6) shall be applied to the following in the following order of

priority:

     (a) Any known tax liability to this state.

     (b) Any other known liability to this state.

     (c) Any of the following in the order of priority received,

unless otherwise provided by law:

     (i) A support liability.

     (ii) A writ of garnishment or other court order directed to

this state or the state treasurer.

     (iii) A levy of the internal revenue service.

     (iv) A liability to repay benefits obtained under the Michigan

employment security act, 1936 (Ex Sess) PA 1, MCL 421.1 to 421.75.

     (8) The department of treasury shall promulgate rules or

revise existing rules under the administrative procedures act of

1969, 1969 PA 306, MCL 24.201 to 24.328, as necessary to implement

this section. The rules shall include a procedure for assuring that

a defendant or claimant has received or will receive notice and an

opportunity for a hearing with respect to the liability to which

the amount of the judgment or claim is to be applied.

     (9) Subsections (4) and (5) apply to all judgments and claims,

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 defendant against which the judgment was entered

or claim granted shall notify the department of treasury of the

order when providing the name of the plaintiff, claimant, or

individual under subsection (5), and the name and identifying

information of the plaintiff, claimant, or individual is exempt

from disclosure under the freedom of information act, 1976 PA 442,

MCL 15.231 to 15.246.

     (10) As used in this section, "support" means that term as

defined in section 2a of the friend of the court act, 1982 PA 294,

MCL 552.502a.

     Enacting section 1. This amendatory act takes effect January

1, 2016.