LEGAL NOTICE FEE ADJUSTMENT H.B. 4575 (H-2):
SUMMARY OF BILL
REPORTED FROM COMMITTEE
House Bill 4575 (Substitute H-2 as reported without amendment)
Sponsor: Representative Beau Matthew LaFave
CONTENT
The bill would amend the Revised Judicature Act to require the Department of Treasury to adjust the fees that a newspaper may charge for certain legal notices published after the bill's effective date to reflect percentage increases in the United States Consumer Price Index.
The Act prescribes the minimum and maximum rates that a newspaper may charge for publishing a legal notice or an order, citation, summons, advertisement, or other matter required by law to be published in a newspaper. Previously, the Act required the rates to be adjusted according to the U.S. Consumer Price Index each year for five years beginning March 1, 2008.
Under the bill, for publications after its effective date, the Department would have to adjust the prescribed rates to reflect the percentage increase in the U.S. Consumer Price Index from
March 1, 2008, to June 1, 2017. Annually, from March 1, 2018, to March 1, 2025, the Department would have to adjust the rates further by the percentage increase in the U.S. Consumer Price Index for the preceding calendar year. The results of an adjustment would have to be rounded to the nearest five cents.
MCL 600.2534 Legislative Analyst: Jeff Mann
FISCAL IMPACT
The bill would increase costs to State and local government. The total costs to the State and local units would be determined based on future increases in the United State Consumer Price Index (CPI) and the number of publications of legal notice required to be made in a single year.
The rates that reflect the CPI increase from March 1, 2008, to April 1, 2017, are listed below:
$23.50 per folio for the first publication.
$9.70 per folio for each subsequent publication.
$50.40 minimum for a notice that must be published once.
$67.55 minimum for a notice that must be published twice or more.
Date Completed: 6-8-17 Fiscal Analyst: Cory Savino
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.