HOUSE BILL No. 5833 April 9, 2002, Introduced by Reps. Murphy, Jacobs, Bernero, Bogardus, McConico, Dennis, Waters, Zelenko, Lockwood, Switalski, Daniels, Hale and Lemmons and referred to the Committee on Family and Children Services. A bill to provide for support of children whose parents fail to comply with court-ordered child support; and to prescribe the powers and duties of certain state departments, officers, and employees in the distribution of undisbursed child support. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 1. (1) This act shall be known and may be cited as 2 the "child support assurance project act". 3 (2) As used in this act: 4 (a) "Children's trustee" means the position established in 5 section 2a of the uniform unclaimed property act, 1995 PA 29, MCL 6 567.222a. 7 (b) "Court" means the circuit court. 8 (c) "CSAP" or "child support assurance project" means the 9 program for distributing undisbursed child support prescribed by 10 this act. 03964'01 GWH 2 1 (d) "CSAP payment" or "child support assurance project 2 payment" means money distributed to a payee under the child sup- 3 port assurance project. 4 (e) "Department" means the family independence agency. 5 (f) "Eligible child" means a child eligible for CSAP 6 payments. 7 (g) "Eligible custodian" means a child's custodian who is 8 eligible to receive CSAP payments on behalf of an eligible 9 child. 10 (h) "Friend of the court" means the individual serving under 11 section 21, or appointed under section 23, of the friend of the 12 court act, 1982 PA 294, MCL 552.521 and 552.523, as the head of 13 the office of the friend of the court. 14 (i) "Fund" means the undisbursed child support fund estab- 15 lished in section 24 of the uniform unclaimed property act, 1995 16 PA 29, MCL 567.244. 17 (j) "Intangible property" means that term as defined in sec- 18 tion 2 of the uniform unclaimed property act, 1995 PA 29, MCL 19 567.222. 20 (k) "Office of the friend of the court" or "office" means an 21 agency created by section 3 of the friend of the court act, 1982 22 PA 294, MCL 552.503. 23 (l) "Payer" means an individual who is obligated to pay 24 child support under a court order. 25 (m) "Payee" means the individual who receives, on behalf of 26 the child, child support paid under a court order. 03964'01 3 1 (n) "Period of nonsupport" means the period of time during 2 which a child receives none of the child support ordered to be 3 paid under court order. 4 (o) "Undisbursed child support" means money paid as child 5 support to the friend of the court or the state disbursement unit 6 that is reportable and payable to the children's trustee under 7 the uniform unclaimed property act, 1995 PA 29, MCL 567.221 to 8 567.265. 9 Sec. 2. (1) The children's trustee, in cooperation with the 10 department and friends of the court, shall establish and adminis- 11 ter the child support assurance project as prescribed by this 12 act. The child support assurance project shall be conducted 13 fairly and efficiently so as to fulfill its purpose of preventing 14 children who live in single-parent households and who are depen- 15 dent on court-ordered child support payments from living in, and 16 being subjected to the devastating effects of, poverty. 17 (2) Before February 1 of each year, the children's trustee 18 shall report to the legislature the amount of money in the fund 19 and the number of eligible children with eligible custodians as 20 of January 1 of that year. During a fiscal year in which the 21 legislature specifies the amount of a monthly CSAP payment, the 22 children's trustee shall distribute monthly CSAP payments to each 23 eligible child through that child's eligible custodian. 24 Sec. 3. (1) A child who meets the following criteria is an 25 eligible child: 26 (a) Is a resident of and is physically present in Michigan. 03964'01 4 1 (b) Either is younger than age 18 or, for the time the child 2 is regularly attending high school on a full-time basis with a 3 reasonable expectation of completing sufficient credits to gradu- 4 ate from high school while residing on a full-time basis with an 5 eligible custodian, is older than age 17, but younger than age 19 6 years and 6 months. 7 (c) Has not received a court-ordered child support payment 8 within the 6 months before applying. The department shall exempt 9 a child from this criterion if the child or child's custodian has 10 a reasonable fear that bringing an action for child support would 11 result in an increased risk of physical or psychological violence 12 to the child or custodian. 13 (d) Has an employed eligible custodian or an unemployed, 14 disabled eligible custodian. 15 (2) An individual with whom an eligible child resides and 16 who meets the following criteria is an eligible custodian: 17 (a) Is a parent, guardian, or other legal custodian of the 18 eligible child. A putative father must establish paternity to 19 meet this criterion. 20 (b) Is the payee on behalf of the eligible child under a 21 child support order. The department shall exempt a custodian 22 from this criterion if the custodian has a reasonable fear that 23 bringing an action for child support would result in an increased 24 risk of physical or psychological violence to the eligible child 25 or custodian. 26 (c) If receiving financial assistance under the social 27 welfare act, 1939 PA 280, MCL 400.1 to 400.119b, assigns to the 03964'01 5 1 department the right to collect child support arrearages and 2 payments. 3 (d) Is employed or, if unemployed, is disabled under the 4 standards for disability the department sets for the CSAP. 5 (e) Has household income equal to or less than 200% of the 6 federal poverty level, as published by the United States depart- 7 ment of health and human services or its successor agency. 8 (f) Is cooperating with the office of child support in its 9 attempt to collect the child support due to the eligible child 10 under the child support order. The department shall exempt a 11 custodian from this criterion if the custodian has a reasonable 12 fear that attempting to establish paternity or enforce an exist- 13 ing child support order would result in an increased risk of 14 physical or psychological violence to the eligible child or 15 custodian. 16 (g) Child support under the child support order remains 17 unpaid. 18 (3) To receive CSAP payments, an eligible custodian shall 19 apply to the department under the procedure established by the 20 department, supplying information and documentation the depart- 21 ment requires to show that the custodian and child each meet the 22 eligibility criteria prescribed in this section. 23 Sec. 4. (1) The state shall hold the money in the fund in 24 trust for eligible children. Money held in the fund is not state 25 property. To the extent possible, the children's trustee shall 26 invest fund money in the same manner and under the same 03964'01 6 1 restrictions that apply to the investment of state money under 2 1855 PA 105, MCL 21.141 to 21.147. 3 (2) The legislature shall appropriate money from the fund 4 only to the children's trustee for distribution as CSAP 5 payments. The children's trustee shall not distribute an appro- 6 priation under this section unless the legislature specifies in 7 the act making the appropriation the monthly CSAP payment 8 amount. The department of treasury shall issue CSAP payments as 9 the children's trustee directs. 10 Sec. 5. (1) In cooperating with the children's trustee in 11 the implementation of the CSAP, the department shall do all of 12 the following: 13 (a) Design a simple application form and procedure for cer- 14 tifying eligible children and eligible custodians, including 15 information and documents required to show eligibility. 16 (b) Extensively publicize the CSAP through offices of the 17 friend of the court and the office of child support, making 18 application forms and instructions available through those 19 offices. 20 (c) Refer information on eligible applicants to the office 21 of child support for confirmation and enforcement action. 22 (d) Transmit the names and addresses of, and other relevant 23 information about, eligible children, eligible custodians, and 24 child support payers to the children's trustee. 25 (2) In cooperating with the children's trustee in the imple- 26 mentation of the CSAP, each friend of the court and office of the 27 friend of the court shall do all of the following: 03964'01 7 1 (a) Forward in a timely manner undisbursed child support as 2 required by the uniform unclaimed property act, 1995 PA 29, MCL 3 567.221 to 567.265. 4 (b) Accept and forward applications for the CSAP. 5 (c) Cooperate with the children's trustee and the department 6 in sharing records and information necessary for the administra- 7 tion of the CSAP. 8 (d) Give priority to actions to establish child support 9 orders for those children and custodians who wish to apply and 10 would likely be eligible for CSAP payments. 11 (e) Before February 1 regarding the last 6 months of the 12 previous calendar year and before August 1 regarding the first 6 13 months of the current calendar year, report to the appropriations 14 committees of the senate and house of representatives all of the 15 following: 16 (i) The number of CSAP applications received and forwarded 17 to the department. 18 (ii) The number of children who did not receive court 19 ordered child support during the 6-month period. 20 (iii) The amount of undisbursed child support divided into 21 categories based on the reason that the child support was not 22 disbursed. 23 (iv) Methods used to locate and contact child support 24 payers, such as agencies contacted and locator services 25 utilized. 26 (v) Recommendations for reducing the amount of undisbursed 27 child support. 03964'01 8 1 Sec. 6. (1) Before February 1 regarding the last 6 months 2 of the previous calendar year and before August 1 regarding the 3 first 6 months of the current calendar year, the department of 4 treasury shall report to the appropriations committees of the 5 senate and house of representatives all of the following: 6 (a) The balance remaining in the fund as of January 1 and 7 July 1, respectively. 8 (b) The number of eligible children to whom CSAP payments 9 were made. 10 (c) The number of CSAP payments returned and the reasons for 11 the returns. 12 (d) Total undisbursed child support received from friends of 13 the court, divided into categories based on the reason that the 14 child support was not disbursed. 15 (2) Before February 1 regarding the last 6 months of the 16 previous calendar year and before August 1 regarding the first 6 17 months of the current calendar year, the state disbursement unit 18 established in section 6 of the office of child support act, 1971 19 PA 174, MCL 400.236, shall report to the appropriations commit- 20 tees of the senate and house of representatives the amount of 21 undisbursed child support, divided into categories based on the 22 reason that the child support was not disbursed, and the amount 23 of undisbursed child support remitted to each friend of the 24 court. 25 Enacting section 1. This act does not take effect unless 26 all of the following bills of the 91st Legislature are enacted 27 into law: 03964'01 9 1 (a) House Bill No. 4918. 2 (b) Senate Bill No. _____ or House Bill No. 5834 (request 3 no. 03965'01). 03964'01 Final page. GWH