House Introduced Bill 6004

HOUSE BILL No. 6004

May 7, 2002, Introduced by Reps. Howell, Tabor, Hummel, DeRossett, Newell, Vander Veen, Voorhees, Patterson, Raczkowski,
Caul, Julian, Bisbee, Vear and George and referred to the Committee on Civil Law and the Judiciary.

A bill to amend 1982 PA 295, entitled

"Support and parenting time enforcement act,"

by amending sections 2, 3, 25a, 25b, and 28 (MCL 552.602,

552.603, 552.625a, 552.625b, and 552.628), section 2 as amended

by 1999 PA 160, section 3 as amended by 2001 PA 106, and sections

25a and 25b as added and section 28 as amended by 1998 PA 334,

and by adding sections 5c, 25c, 25d, 25e, 25f, 25g, 25h, and

25i.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1
Sec. 2. As used in this act:

2
(a) "Account" means any of the following:

3
(i) A demand deposit account.

4
(ii) A draft account.

5
(iii) A checking account.

06059'01 * GWH 2

1
(iv) A negotiable order of withdrawal account.

2
(v) A share account.

3
(vi) A savings account.

4
(vii) A time savings account.

5
(viii) A mutual fund account.

6
(ix) A securities brokerage account.

7
(x) A money market account.

8
(xi) A retail investment account.

9
(b) "Account" does not mean any of the following:

10
(i) A trust.

11
(ii) An annuity.

12
(iii) A qualified individual retirement account.

13
(iv) An account covered by the employee retirement income

14
security act of 1974, Public Law 93-406, 88 Stat. 829.

15
(v) A pension or retirement plan.

16
(vi) An insurance policy.

17
(c) "Address" means the primary address shown on the records

18
of a financial institution used by the financial institution to

19
contact the account holder.

20
(D) "CASH" MEANS MONEY OR THE EQUIVALENT OF MONEY, SUCH AS A

21
MONEY ORDER, CASHIER'S CHECK, OR NEGOTIABLE CHECK OR A PAYMENT BY

22
DEBIT OR CREDIT CARD, WHICH EQUIVALENT IS ACCEPTED AS CASH BY THE

23
AGENCY ACCEPTING THE PAYMENT.

24
(E) "COURT FAMILY SERVICES OFFICE" MEANS AN AGENCY CREATED

25
IN SECTION 3 OF THE COURT FAMILY SERVICES OFFICE ACT,

26
MCL 552.503.

06059'01 * 3

1
(F) "COURT FAMILY SERVICES OFFICE ACT" MEANS 1982 PA 294,

2
MCL 552.501 TO 552.535.

3
(G) (d) "Department" means the family independence

4
agency.

5
(H) (e) "Driver's license" means license as that term is

6
defined in section 25 of the Michigan vehicle code, 1949 PA 300,

7
MCL 257.25.

8
(I) (f) "Employer" means an individual, sole proprietor-

9
ship, partnership, association, or private or public corporation,

10
the United States or a federal agency, this state or a political

11
subdivision of this state, another state or a political subdivi-

12
sion of another state, or another legal entity that hires and

13
pays an individual for his or her services.

14
(J) (g) "Financial asset" means a deposit, account, money

15
market fund, stock, bond, or similar instrument.

16
(K) (h) "Financial institution" means any of the

17
following:

18
(i) A state or national bank.

19
(ii) A state or federally chartered savings and loan

20
association.

21
(iii) A state or federally chartered savings bank.

22
(iv) A state or federally chartered credit union.

23
(v) An insurance company.

24
(vi) An entity that offers any of the following to a resi-

25
dent of this state:

26
(A) A mutual fund account.

06059'01 * 4

1
(B) A securities brokerage account.

2
(C) A money market account.

3
(D) A retail investment account.

4
(vii) An entity regulated by the securities and exchange

5
commission that collects funds from the public.

6
(viii) An entity that is a member of the national associa-

7
tion of securities dealers and that collects funds from the

8
public.

9
(ix) Another entity that collects funds from the public.

10
(i) "Friend of the court act" means 1982 PA 294,

11
MCL 552.501 to 552.535.

12
(l) (j) "Income" means any of the following:

13
(i) Commissions, earnings, salaries, wages, and other income

14
due or to be due in the future to an individual from his or her

15
employer and successor employers.

16
(ii) A payment due or to be due in the future to an individ-

17
ual from a profit-sharing plan, a pension plan, an insurance con-

18
tract, an annuity, social security, unemployment compensation,

19
supplemental unemployment benefits, or worker's compensation.

20
(iii) An amount of money that is due to an individual as a

21
debt of another individual, partnership, association, or private

22
or public corporation, the United States or a federal agency,

23
this state or a political subdivision of this state, another

24
state or a political subdivision of another state, or another

25
legal entity that is indebted to the individual.

26
(M) (k) "Insurer" means an insurer, health maintenance

27
organization, health care corporation, or other group, plan, or

06059'01 * 5

1
entity that provides health care coverage in accordance with any

2
of the following acts:

3
(i) The public health code, 1978 PA 368, MCL 333.1101 to

4
333.25211.

5
(ii) The insurance code of 1956, 1956 PA 218, MCL 500.100 to

6
500.8302.

7
(iii) The nonprofit health care corporation reform act, 1980

8
PA 350, MCL 550.1101 to 550.1704.

9
(N) "IV-D AGENCY" MEANS THE AGENCY IN THIS STATE PERFORMING

10
THE FUNCTIONS UNDER PART D OF TITLE IV OF THE SOCIAL SECURITY

11
ACT, CHAPTER 531, 49 STAT. 620, 42 U.S.C. 651 TO 655, 656 TO 660,

12
AND 663 TO 669b, AND INCLUDES A PERSON PERFORMING THOSE FUNCTIONS

13
UNDER CONTRACT INCLUDING A COURT FAMILY SERVICES OFFICE OR A

14
PROSECUTING ATTORNEY.

15
(O) (l) "Medical assistance" means medical assistance as

16
established under title XIX of the social security act, chapter

17
531, 49 Stat. 620, 42 U.S.C. 1396 to 1396f, 1396g-1 to 1396r-6

18
, and 1396r-8 to 1396v.

19
(P) (m) "Occupational license" means a certificate, regis-

20
tration, or license issued by a state department, bureau, or

21
agency that has regulatory authority over an individual that

22
allows an individual to legally engage in a regulated occupation

23
or that allows the individual to use a specific title in the

24
practice of an occupation, profession, or vocation.

25
(Q) (n) "Office of child support" means the office of

26
child support established in section 2 of the office of child

27
support act, 1971 PA 174, MCL 400.232.

06059'01 * 6

1
(o) "Office of the friend of the court" means an agency

2
created in section 3 of the friend of the court act,

3
MCL 552.503.

4
(R) (p) "Order of income withholding" means an order

5
entered by the circuit court providing for the withholding of a

6
payer's income to enforce a support order under this act.

7
(S) (q) "Payer" means an individual who is ordered by the

8
circuit court to pay support.

9
(T) "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, CORPORATION,

10
ASSOCIATION, GOVERNMENTAL ENTITY, OR OTHER LEGAL ENTITY.

11
(U) (r) "Plan administrator" means that term as used in

12
relation to a group health plan under section 609 of part 6 of

13
subtitle B of title I of the employee retirement income security

14
act of 1974, Public Law 93-406, 29 U.S.C. 1169, if the health

15
care coverage plan of the individual who is responsible for pro-

16
viding a child with health care coverage is subject to that act.

17
(V) (s) "Political subdivision" means a county, city, vil-

18
lage, township, educational institution, school district, or spe-

19
cial district or authority of the state or of a local unit of

20
government.

21
(W) (t) "Recipient of support" means the following:

22
(i) The spouse, if the support order orders spousal

23
support.

24
(ii) The custodial parent or guardian, if the support order

25
orders support for a minor child or a child who is 18 years of

26
age or older.

06059'01 * 7

1
(iii) The department, if support has been assigned to that

2
department.

3
(X) (u) "Recreational or sporting license" means a hunt-

4
ing, fishing, or fur harvester's license issued under the natural

5
resources and environmental protection act, 1994 PA 451,

6
MCL 324.101 to 324.90106, but does not include a commercial fish-

7
ing license or permit issued under part 473 of the natural

8
resources and environmental protection act, 1994 PA 451,

9
MCL 324.47301 to 324.47362.

10
(Y) (v) "Referee" means a person AN INDIVIDUAL who is

11
designated as a referee under the friend of the court act.

12
(Z) (w) "Source of income" means an employer or successor

13
employer or another individual or entity that owes or will owe

14
income to the payer.

15
(AA) (x) "State disbursement unit" or "SDU" means the

16
entity established in section 6 of the office of child support

17
act, 1971 PA 174, MCL 400.236.

18
(BB) "STATE COURT FAMILY SERVICES OFFICE BUREAU" IS THE

19
STATE COURT FAMILY SERVICES OFFICE BUREAU CREATED IN THE STATE

20
COURT ADMINISTRATIVE OFFICE IN SECTION 19 OF THE COURT FAMILY

21
SERVICES OFFICE ACT, MCL 552.519.

22
(CC) (y) "Support" means all of the following:

23
(i) The payment of money for a child or a spouse ordered by

24
the circuit court, whether the order is embodied in an interim,

25
temporary, permanent, or modified order or judgment. Support may

26
include payment of the expenses of medical, dental, and other

27
health care, child care expenses, and educational expenses.

06059'01 * 8

1
(ii) The payment of money ordered by the circuit court under

2
the paternity act, 1956 PA 205, MCL 722.711 to 722.730, for the

3
necessary expenses incurred by or for the mother in connection

4
with her confinement, for other expenses in connection with the

5
pregnancy of the mother, or for the repayment of genetic testing

6
expenses.

7
(iii) A surcharge accumulated under section 3a.

8
(DD) (z) "Support order" means an order entered by the

9
circuit court for the payment of support, whether or not a sum

10
certain.

11
(EE) (aa) "Work activity" means any of the following:

12
(i) Unsubsidized employment.

13
(ii) Subsidized private sector employment.

14
(iii) Subsidized public sector employment.

15
(iv) Work experience, including work associated with the

16
refurbishing of publicly assisted housing, if sufficient private

17
sector employment is not available.

18
(v) On-the-job training.

19
(vi) Job search and job readiness assistance.

20
(vii) Community service programs.

21
(viii) Vocational educational training, not to exceed 12

22
months with respect to an individual.

23
(ix) Job skills training directly related to employment.

24
(x) Education directly related to employment, in the case of

25
an individual who has not received a high school diploma or a

26
certificate of high school equivalency.

06059'01 * 9

1
(xi) Satisfactory attendance at secondary school or in a

2
course of study leading to a certificate of general equivalence,

3
in the case of an individual who has not completed secondary

4
school or received such a certificate.

5
(xii) The provisions of child care services to an individual

6
who is participating in a community service program.

7
Sec. 3. (1) A support order issued by a court of this state

8
shall be enforced as provided in this section ACT.

9
(2) Except as otherwise provided in this section, a support

10
order that is part of a judgment or is an order in a domestic

11
relations matter as defined in section 2 of the friend of the

12
court FAMILY SERVICES OFFICE act, MCL 552.502, is a judgment on

13
and after the date each support payment is due THE SUPPORT

14
AMOUNT IS DUE AS PRESCRIBED IN SECTION 5C, with the full force,

15
effect, and attributes of a judgment of this state, and is not,

16
on and after the date it is due, subject to retroactive

17
modification. Retroactive modification of a support payment due

18
under a support order is permissible with respect to a period

19
during which there is pending a petition for modification, but

20
only from the date that notice of the petition was given to the

21
payer or recipient of support.

22
(3) This section does not apply to an ex parte interim sup-

23
port order or a temporary support order entered under supreme

24
court rule.

25
(4) The COURT FAMILY SERVICES office of the friend of the

26
court shall make available to a payer or payee the forms and

06059'01 * 10

1
instructions described in section 17a of the friend of the

2
court FAMILY SERVICES OFFICE act, MCL 552.517a.

3
(5) This section does not prohibit a court approved agree-

4
ment between the parties to retroactively modify a support

5
order. This section does not limit other enforcement remedies

6
available under this or another act.

7
(6) Every support order that is part of a judgment issued by

8
a court of this state or that is an order in a domestic relations

9
matter as defined in section 2 of the friend of the court

10
FAMILY SERVICES OFFICE act, MCL 552.502, shall include all of the

11
following:

12
(a) Substantially the following statement: "Except as oth-

13
erwise provided in section 3 of the support and parenting time

14
enforcement act, 1982 PA 295, MCL 552.603, a support order that

15
is part of a judgment or that is an order in a domestic relations

16
matter as defined in section 2 of the friend of the court

17
FAMILY SERVICES OFFICE act, 1982 PA 294, MCL 552.502, is a judg-

18
ment on and after the date each support payment THE SUPPORT

19
AMOUNT is due, with the full force, effect, and attributes of a

20
judgment of this state, and is not, on and after the date it is

21
due, subject to retroactive modification. A surcharge will be

22
added to support payments AMOUNTS that are past due as provided

23
in section 3a of the support and parenting time enforcement act,

24
1982 PA 295, MCL 552.603a.".

25
(b) Notice informing the payer of the imposition of liens by

26
operation of law and that the payer's real and personal property

27
can be encumbered or seized if an arrearage accrues in an amount

06059'01 * 11

1
greater than the amount of periodic support payments payable for

2
1 year under the payer's support order FOR THE TIME PERIOD SPEC-

3
IFIED IN THE SUPPORT AND PARENTING TIME ENFORCEMENT ACT, 1982

4
PA 295, MCL 552.601 TO 552.650.

5
(c) A requirement that, within 21 7 days after the payer

6
or payee changes his or her residential or mailing address, that

7
person INDIVIDUAL report the new address and his or her tele-

8
phone number in writing to the friend of the court FAMILY SERV-

9
ICES OFFICE.

10
(d) A requirement that both the payer and payee notify the

11
COURT FAMILY SERVICES office of the friend of the court if he

12
or she holds an occupational license and if he or she holds a

13
driver's license.

14
(e) The name, address, and telephone number of the payer's

15
and payee's current sources of income.

16
(f) A requirement that both the payer and payee inform the

17
COURT FAMILY SERVICES office of the friend of the court of his

18
or her social security number and driver's license number. The

19
requirement of this subdivision to provide a social security

20
number with the information does not apply to a payer or payee

21
who demonstrates he or she is exempt under law from obtaining a

22
social security number or to a payer or payee who for religious

23
convictions is exempt under law from disclosure of his or her

24
social security number under these circumstances. The court

25
shall inform the payer and payee of this possible exemption.

26
(g) Notice that an order for dependent health care coverage

27
takes effect immediately and will be sent to the parent's current

06059'01 * 12

1
and subsequent employers and insurers if appropriate. The notice

2
shall inform the parent that he or she may contest the action by

3
requesting a review or hearing concerning availability of health

4
care coverage at a reasonable cost.

5
(7) A support order shall not accrue interest.

6
SEC. 5C. (1) A SUPPORT ORDER SHALL STATE THE AMOUNT OF SUP-

7
PORT AS A MONTHLY AMOUNT. IF A SUPPORT ORDER DOES NOT STATE THE

8
AMOUNT OF SUPPORT AS A MONTHLY AMOUNT, THE SUPPORT AMOUNT STATED

9
IN THE ORDER SHALL BE CONVERTED TO A MONTHLY AMOUNT USING THE

10
FORMULA ESTABLISHED BY THE STATE COURT ADMINISTRATIVE OFFICE. A

11
SUPPORT ORDER SHALL PRESCRIBE THAT THE MONTHLY SUPPORT AMOUNT

12
ACCRUES ON THE FIRST DAY OF EACH MONTH AND IS DUE AND PAYABLE

13
BEFORE THE FIRST DAY OF THE FOLLOWING MONTH.

14
(2) IF A SUPPORT ORDER TAKES EFFECT ON OTHER THAN THE FIRST

15
DAY OF A MONTH, THE MONTHLY AMOUNT IS PRORATED BASED ON THE DAILY

16
AMOUNT FOR THAT MONTH. A MONTHLY SUPPORT ORDER AMOUNT SHALL NOT

17
BE PRORATED FOR THE LAST MONTH IN WHICH THE ORDER IS IN EFFECT.

18
(3) IF THE IV-D AGENCY RECEIVES A SUPPORT PAYMENT THAT, AT

19
THE TIME OF ITS RECEIPT, EXCEEDS A PAYER'S SUPPORT AMOUNT PAYABLE

20
PLUS AN AMOUNT PAYABLE UNDER AN ARREARAGE PAYMENT SCHEDULE, THE

21
IV-D AGENCY SHALL APPLY THE EXCESS AGAINST THE PAYER'S TOTAL

22
ARREARAGE ACCRUED UNDER ALL SUPPORT ORDERS UNDER WHICH THE PAYER

23
IS OBLIGATED. IF A BALANCE REMAINS AFTER APPLICATION AGAINST THE

24
TOTAL ARREARAGE, THE IV-D AGENCY SHALL DO EITHER OF THE

25
FOLLOWING:

06059'01 * 13

1
(A) IF THE PAYER DESIGNATES THE BALANCE AS ADDITIONAL

2
SUPPORT, IMMEDIATELY DISBURSE THAT AMOUNT TO THE RECIPIENT OF

3
SUPPORT.

4
(B) RETAIN THE BALANCE AND DISBURSE IT TO THE RECIPIENT OF

5
SUPPORT IMMEDIATELY WHEN THE AMOUNT IS PAYABLE AS SUPPORT.

6
Sec. 25a. (1) The amount of past due support that accrues

7
under a judgment pursuant to AS PROVIDED IN section 3 or under

8
the law of another state constitutes a lien in favor of the

9
recipient of support against the real and personal property of a

10
payer, other than financial assets pledged to a financial insti-

11
tution as collateral or financial assets to which a financial

12
institution has a prior right of setoff or other lien. The lien

13
is effective at the time that the support is due and unpaid and

14
shall continue until the amount of past due support is paid in

15
full or the lien is terminated by the support enforcement IV-D

16
agency.

17
(2) Liens that arise in other states shall be accorded full

18
faith and credit when the requirements of section 25b OR 25C are

19
met.

20
(3) A LIEN CREATED UNDER SUBSECTION (1) IS SUBORDINATE TO A

21
PRIOR PERFECTED LIEN. ALL LIENS CREATED UNDER SUBSECTION (1) AND

22
DESCRIBED IN SUBSECTION (2) HAVE EQUAL PRIORITY.

23
(4) BEFORE A LIEN IS PERFECTED OR LEVIED UNDER THIS ACT, THE

24
IV-D AGENCY SHALL SEND A NOTICE TO THE PAYER SUBJECT TO THE SUP-

25
PORT ORDER INFORMING THE PAYER OF THE IMPOSITION OF LIENS BY

26
OPERATION OF LAW AND THAT THE PAYER'S REAL AND PERSONAL PROPERTY

27
CAN BE ENCUMBERED OR SEIZED IF AN ARREARAGE ACCRUES IN AN AMOUNT

06059'01 * 14

1
THAT EXCEEDS THE AMOUNT OF PERIODIC SUPPORT PAYMENTS PAYABLE

2
UNDER THE PAYER'S SUPPORT ORDER FOR THE TIME PERIOD SPECIFIED IN

3
THIS ACT.

4
(5) THE IV-D AGENCY OR ANOTHER PERSON REQUIRED TO PROVIDE

5
NOTICE UNDER THIS SECTION OR SECTIONS 25B TO 25I SHALL PROVIDE

6
NOTICE BY PAPER, UNLESS THE PERSON TO BE NOTIFIED AGREES TO

7
NOTICE BY OTHER MEANS. THE IV-D AGENCY OR OTHER PERSON PROVIDING

8
NOTICE UNDER THIS SECTION OR SECTIONS 25B TO 25I SHALL COMPLETE

9
AND PRESERVE PROOF OF SERVICE OF THE NOTICE IN A FORM SUBSTAN-

10
TIALLY CONFORMING TO THE REQUIREMENTS FOR PROOF OF SERVICE UNDER

11
THE MICHIGAN COURT RULES.

12
Sec. 25b. (1) The office of the friend of the court A

13
REMEDY PROVIDED BY THIS SECTION IS CUMULATIVE AND DOES NOT AFFECT

14
THE AVAILABILITY OF ANOTHER REMEDY UNDER THIS ACT OR OTHER LAW.

15
(2) EXCEPT FOR A FINANCIAL ASSET TO WHICH SECTION 25C

16
APPLIES, THE IV-D AGENCY may perfect a lien created under

17
section 25a upon the real or personal property of the payer when

18
an arrearage has accrued in an amount that exceeds the MONTHLY

19
amount of periodic support payments payable for 1 year under

20
the payer's support order.

21
(2) Before a lien is perfected in a case in which a support

22
order was issued before the effective date of this section, the

23
office of the friend of the court shall send a notice to the

24
payer subject to the support order informing the payer of the

25
imposition of liens by operation of law and that the payer's real

26
and personal property can be encumbered or seized if an arrearage

06059'01 * 15

1
accrues in an amount that exceeds the amount of periodic support

2
payments payable for 1 year under the payer's support order.

3
(3) If the arrearage under subsection (2) is reached and the

4
office of the friend of the court IV-D AGENCY has determined

5
that the delinquent payer holds real or personal property, OTHER

6
THAN A FINANCIAL ASSET TO WHICH SECTION 25C APPLIES, the office

7
of the friend of the court IV-D AGENCY may perfect the lien.

8
THE IV-D AGENCY SHALL PERFECT A LIEN ON PROPERTY TO WHICH THIS

9
SECTION APPLIES IN THE SAME MANNER IN WHICH ANOTHER LIEN ON PROP-

10
ERTY OF THE SAME TYPE IS PERFECTED.

11
(4) The office of the friend of the court shall provide a

12
copy of the notice under subsection (2) to each of the

13
following:

14
(a) A financial institution doing business in this state if

15
the payer has 1 or more accounts at that financial institution.

16
(b) The appropriate agency of another state if the payer

17
holds assets in that other state.

18
(5) The office of the friend of the court may provide notice

19
of the lien and subsequent notices by paper or automated means.

20
(6) To perfect a lien created by section 25a, the office of

21
the friend of the court must record the lien with the register of

22
deeds in the county where the real property is located, or for

23
personal property, in the appropriate state or county office. A

24
lien recorded as provided in this subsection takes effect on the

25
date and at the time of that recording.

26
(4) (7) The office of the friend of the court IV-D

27
AGENCY shall notify the payer when the office of the friend of

06059'01 * 16

1
the court IV-D AGENCY has perfected a lien against real or

2
personal property of the payer. The notice shall be sent by

3
ordinary mail to the payer's last known address, . A AND A

4
copy of the notice shall be sent by ordinary mail to the recipi-

5
ent of support. The A notice UNDER THIS SUBSECTION shall

6
include all of the following:

7
(a) The amount of the arrearage.

8
(b) That a lien is in effect on the real or personal prop-

9
erty of the payer.

10
(c) That the property is subject to seizure unless the payer

11
responds by paying the arrearage or requesting a review within

12
21 14 days after the date of mailing the notice.

13
(d) That, at the review, the payer may object to the lien

14
and TO proposed action based on a mistake of fact concerning the

15
overdue support amount or the payer's identity.

16
(e) That, if the payer believes that the amount of support

17
ordered should be modified because of a change in circumstances,

18
the payer may file a petition with the court for modification of

19
the support order.

20
(5) (8) Within 21 14 days after the date on which the

21
notice described in subsection (7) (4) is mailed to a payer,

22
the payer may request a review on the lien and the proposed

23
action. If the payer requests a review under this subsection,

24
the office of the friend of the court IV-D AGENCY shall

25
schedule CONDUCT the review within 14 7 days after the date

26
of the request.

06059'01 * 17

1
(6) (9) If, at the review, the payer establishes that the

2
lien is not proper because of a mistake of fact, the office of

3
the friend of the court IV-D AGENCY shall terminate the lien

4
and, within 7 days, notify the applicable entity that the lien is

5
terminated.

6
(7) (10) If the payer fails to request a review, to appear

7
for a review, or to establish a mistake of fact, the office of

8
the friend of the court IV-D AGENCY may collect the arrearage by

9
levy upon any property belonging to the payer as provided in this

10
section. The office of the friend of the court IV-D AGENCY

11
shall notify the payer at the review or by written notice of its

12
intent to levy.

13
(11) To enforce a lien under this section by levying

14
against an account at a financial institution, the office of the

15
friend of the court shall provide notice in the manner provided

16
by law for levying against an account at a financial

17
institution.

18
(8) (12) To enforce a lien on real property or personal

19
property, other than an account at a financial institution, the

20
office may order the sale of THE IV-D AGENCY MAY SELL THE real

21
property in the manner provided by law for the foreclosure of

22
mortgage liens; order execution of APPLY TO THE CIRCUIT COURT

23
FOR AN ORDER TO EXECUTE the judgment, ; TO appoint a receiver

24
of the real and personal property subject to the lien, and TO

25
order the property and its income to be applied to the amount of

26
the judgment; or take any other appropriate action to enforce the

27
judgment. The office IV-D AGENCY shall mail a copy of orders

06059'01 * 18

1
under this subsection to the payer and recipient of support at

2
his or her last known address.

3
(13) A lien created under section 25a is subordinate to any

4
prior perfected lien.

5
(9) (14) A payer may request that the office of the

6
friend of the court IV-D AGENCY terminate a lien against the

7
real and personal property of the payer on the basis that the

8
payer is no longer in arrears. If the payer is no longer in

9
arrears, the office of the friend of the court IV-D AGENCY

10
shall terminate the lien pursuant to IN ACCORDANCE WITH law.

11
(10) (15) An entity is not liable under any federal or

12
state law to any person for any disclosure of information to the

13
office or the designee of the office IV-D AGENCY under this

14
section or for any other action taken in good faith to comply

15
with the requirements of this section.

16
SEC. 25C. (1) IF A PAYER'S FINANCIAL ASSETS HELD BY A

17
FINANCIAL INSTITUTION ARE SUBJECT TO A LIEN UNDER SECTION 25A AND

18
AN ARREARAGE HAS ACCRUED IN AN AMOUNT THAT EXCEEDS THE MONTHLY

19
AMOUNT OF PERIODIC SUPPORT PAYMENTS PAYABLE UNDER THE PAYER'S

20
SUPPORT ORDER, THE IV-D AGENCY MAY LEVY AGAINST THE PAYER'S

21
FINANCIAL ASSETS HELD BY A FINANCIAL INSTITUTION. TO LEVY

22
AGAINST A PAYER'S FINANCIAL ASSETS, THE IV-D AGENCY SHALL SERVE

23
THE FINANCIAL INSTITUTION HOLDING THE FINANCIAL ASSETS WITH A

24
NOTICE OF THE LIEN AND LEVY, DIRECTING THE FINANCIAL INSTITUTION

25
TO FREEZE THE PAYER'S FINANCIAL ASSETS HELD BY THE FINANCIAL

26
INSTITUTION.

06059'01 * 19

1
(2) THE OFFICE OF CHILD SUPPORT, IN CONSULTATION WITH THE

2
STATE COURT ADMINISTRATIVE OFFICE, SHALL CREATE THE FORM THAT IS

3
REQUIRED FOR THE NOTICE TO A FINANCIAL INSTITUTION UNDER SUBSEC-

4
TION (1). THE FORM SHALL INCLUDE, OR PROVIDE FOR INCLUSION OF,

5
AT LEAST ALL OF THE FOLLOWING:

6
(A) THE LEVY AMOUNT.

7
(B) INFORMATION THAT ENABLES THE FINANCIAL INSTITUTION TO

8
LINK THE PAYER WITH HIS OR HER FINANCIAL ASSETS AND TO NOTIFY THE

9
PAYER.

10
(C) INFORMATION ON HOW TO CONTACT THE IV-D AGENCY.

11
(D) STATEMENTS SETTING FORTH THE RIGHTS AND RESPONSIBILITIES

12
OF THE FINANCIAL INSTITUTION AND PAYER.

13
(3) A IV-D AGENCY MAY WITHDRAW A LEVY UNDER THIS SECTION AT

14
ANY TIME BEFORE THE CIRCUIT COURT CONSIDERS OR HEARS THE MATTER

15
IN AN ACTION FILED UNDER SECTION 25F. THE IV-D AGENCY SHALL GIVE

16
NOTICE OF THE WITHDRAWAL TO THE PAYER AND FINANCIAL INSTITUTION.

17
UPON RECEIVING NOTICE OF A WITHDRAWAL OF A LEVY, THE FINANCIAL

18
INSTITUTION SHALL IMMEDIATELY RELEASE THE PAYER'S FINANCIAL

19
ASSETS.

20
SEC. 25D. (1) A FINANCIAL INSTITUTION INCURS NO OBLIGATION

21
OR LIABILITY TO A DEPOSITOR, ACCOUNT HOLDER, OR OTHER PERSON

22
ARISING FROM THE FURNISHING OF INFORMATION UNDER SECTIONS 25C TO

23
25I OR FROM THE FAILURE TO DISCLOSE TO A DEPOSITOR, ACCOUNT

24
HOLDER, OR OTHER PERSON THAT THE NAME OF A PERSON WAS INCLUDED IN

25
THE INFORMATION PROVIDED.

06059'01 * 20

1
(2) A FINANCIAL INSTITUTION INCURS NO OBLIGATION OR

2
LIABILITY TO THE IV-D AGENCY OR ANOTHER PERSON FOR AN ERROR OR

3
OMISSION MADE IN GOOD FAITH COMPLIANCE WITH SECTIONS 25C TO 25I.

4
(3) A FINANCIAL INSTITUTION INCURS NO OBLIGATION OR LIABIL-

5
ITY FOR BLOCKING, FREEZING, PLACING A HOLD UPON, FORWARDING, OR

6
OTHERWISE DEALING WITH A PERSON'S FINANCIAL ASSETS IN RESPONSE TO

7
A LIEN OR LEVY IMPOSED OR INFORMATION PROVIDED UNDER SECTIONS 25C

8
TO 25I.

9
(4) A FINANCIAL INSTITUTION IS NOT OBLIGATED TO BLOCK,

10
FREEZE, PLACE A HOLD UPON, FORWARD, OR OTHERWISE DEAL WITH A

11
PERSON'S FINANCIAL ASSETS UNTIL SERVED WITH THE NOTICE OF LEVY IN

12
ACCORDANCE WITH SECTION 25C. A FINANCIAL INSTITUTION THAT FOR-

13
WARDS FINANCIAL ASSETS TO THE IV-D AGENCY IN RESPONSE TO A LEVY

14
UNDER SECTION 25C IS DISCHARGED FROM ANY OBLIGATION OR LIABILITY

15
TO THE DEPOSITOR, ACCOUNT HOLDER, OR OTHER PERSON WITH AN INTER-

16
EST IN THE FINANCIAL ASSETS THAT ARE FORWARDED TO THE IV-D

17
AGENCY.

18
SEC. 25E. (1) WHEN A FINANCIAL INSTITUTION RECEIVES A

19
NOTICE OF LEVY ON A PAYER'S FINANCIAL ASSETS HELD BY THE FINAN-

20
CIAL INSTITUTION UNDER SECTION 25C, THE FINANCIAL INSTITUTION

21
SHALL FREEZE THOSE FINANCIAL ASSETS. IF THE PAYER'S FINANCIAL

22
ASSETS HELD BY A FINANCIAL INSTITUTION EXCEED THE LEVY AMOUNT,

23
THE FINANCIAL INSTITUTION SHALL FREEZE THOSE FINANCIAL ASSETS UP

24
TO THE LEVY AMOUNT. A FINANCIAL INSTITUTION SHALL EXECUTE THE

25
FREEZE OF A PAYER'S FINANCIAL ASSETS UNDER THIS SECTION BY THE

26
CLOSE OF BUSINESS ON 1 OF THE FOLLOWING DAYS:

06059'01 * 21

1
(A) IF THE NOTICE IS RECEIVED BEFORE NOON, THE FIRST

2
BUSINESS DAY AFTER THE BUSINESS DAY ON WHICH THE NOTICE IS

3
RECEIVED.

4
(B) IF THE NOTICE IS RECEIVED AT NOON OR LATER, THE SECOND

5
BUSINESS DAY AFTER THE BUSINESS DAY ON WHICH THE NOTICE IS

6
RECEIVED.

7
(2) AFTER COMPLYING WITH SUBSECTION (1), A FINANCIAL INSTI-

8
TUTION SHALL GIVE NOTICE OF THAT COMPLIANCE TO THE IV-D AGENCY

9
AND THE PAYER. A FINANCIAL INSTITUTION'S NOTICE TO A PAYER UNDER

10
THIS SUBSECTION SHALL INCLUDE A COPY OF THE IV-D AGENCY NOTICE TO

11
THE FINANCIAL INSTITUTION.

12
SEC. 25F. (1) A PAYER WHOSE FINANCIAL ASSETS ARE LEVIED ON

13
UNDER SECTION 25C MAY CHALLENGE THE LEVY BY SUBMITTING A WRITTEN

14
CHALLENGE WITH THE IV-D AGENCY AT THE LOCATION SPECIFIED IN THE

15
IV-D AGENCY NOTICE. A PAYER MUST SUBMIT A WRITTEN CHALLENGE

16
UNDER THIS SECTION WITHIN 14 DAYS AFTER THE FINANCIAL INSTITUTION

17
SENDS THE PAYER A COPY OF THE IV-D AGENCY NOTICE AS REQUIRED BY

18
SECTION 25E. A CHALLENGE TO A LEVY UNDER SECTION 25C IS GOVERNED

19
BY THIS ACT AND IS NOT SUBJECT TO CHAPTER 4 OF THE ADMINISTRATIVE

20
PROCEDURES ACT OF 1969, 1969 PA 306, MCL 24.271 TO 24.287. A

21
PAYER WHO SUBMITS A CHALLENGE UNDER THIS SUBSECTION MAY WITHDRAW

22
THE CHALLENGE AT ANY TIME BY GIVING NOTICE OF THE WITHDRAWAL TO

23
THE IV-D AGENCY.

24
(2) IF THE IV-D AGENCY RECEIVES A WRITTEN CHALLENGE FROM A

25
PAYER WITHIN THE TIME LIMIT REQUIRED BY SUBSECTION (1), THE IV-D

26
AGENCY SHALL NOTIFY THE FINANCIAL INSTITUTION ABOUT THE CHALLENGE

27
AND, WITHIN 7 DAYS, SHALL REVIEW THE CASE WITH THE CHALLENGER.

06059'01 * 22

1
THE IV-D AGENCY SHALL CONSIDER ONLY A MISTAKE IN THE PAYER'S

2
IDENTITY OR IN THE AMOUNT OF THE PAYER'S PAST DUE SUPPORT, OR

3
ANOTHER MISTAKE OF FACT, AS CAUSE TO RELEASE OR MODIFY THE LEVY.

4
IF THE IV-D AGENCY DETERMINES THAT A MISTAKE OF FACT OCCURRED,

5
THE IV-D AGENCY SHALL DO 1 OF THE FOLLOWING:

6
(A) IF THE MISTAKE IS THE PAYER'S IDENTITY OR THAT THE PAYER

7
DOES NOT OWE PAST DUE SUPPORT IN AN AMOUNT EQUAL TO OR GREATER

8
THAN THE PAYER'S MONTHLY SUPPORT AMOUNT UNDER A SUPPORT ORDER,

9
NOTIFY THE FINANCIAL INSTITUTION AND THE PAYER THAT THE LEVY IS

10
RELEASED.

11
(B) IF THE PAYER DOES OWE PAST DUE SUPPORT IN AN AMOUNT

12
EQUAL TO OR GREATER THAN THE PAYER'S MONTHLY SUPPORT AMOUNT UNDER

13
A SUPPORT ORDER, BUT THE AMOUNT IN THE NOTICE TO LEVY IS MORE

14
THAN THE PAYER OWES, NOTIFY THE PAYER OF THE CORRECTED AMOUNT.

15
(C) IF THE MISTAKE CONCERNS A FACT OTHER THAN THOSE

16
DESCRIBED IN SUBDIVISIONS (A) AND (B), TAKE ACTION APPROPRIATE TO

17
THE MISTAKE.

18
(3) IF THE IV-D AGENCY FINDS NO MISTAKE OF FACT, THE IV-D

19
AGENCY SHALL NOTIFY THE PAYER OF THAT FINDING.

20
(4) IF THE PAYER DISAGREES WITH THE IV-D AGENCY REVIEW

21
DETERMINATION UNDER THIS SECTION, THE PAYER MAY CHALLENGE THE

22
LEVY UNDER SECTION 25C BY FILING AN ACTION IN THE CIRCUIT COURT

23
THAT ISSUED A SUPPORT ORDER THAT IS AN UNDERLYING BASIS FOR THE

24
LEVY. A PAYER MUST FILE AN ACTION UNDER THIS SECTION WITHIN 14

25
DAYS AFTER THE IV-D AGENCY SENDS NOTICE OF ITS REVIEW DETERMINA-

26
TION AND SHALL GIVE NOTICE OF THE ACTION TO THE IV-D AGENCY.

06059'01 * 23

1
(5) IF AN ACTION IS NOT FILED IN THE CIRCUIT COURT WITHIN

2
THE TIME LIMIT REQUIRED BY SUBSECTION (4), THE IV-D AGENCY SHALL

3
NOTIFY THE FINANCIAL INSTITUTION, DIRECTING THE FINANCIAL INSTI-

4
TUTION TO ACT IN ACCORDANCE WITH THE IV-D AGENCY REVIEW DETERMI-

5
NATION UNDER THIS SECTION. IF AN ACTION IS FILED IN THE CIRCUIT

6
COURT WITHIN THE TIME LIMIT PRESCRIBED IN SUBSECTION (4), THE

7
IV-D AGENCY SHALL NOTIFY THE FINANCIAL INSTITUTION, DIRECTING THE

8
FINANCIAL INSTITUTION TO ACT IN ACCORDANCE WITH THE COURT

9
DECISION.

10
SEC. 25G. (1) A FINANCIAL INSTITUTION THAT RECEIVES A

11
NOTICE OF LEVY UNDER SECTION 25C SHALL FORWARD MONEY IN THE

12
AMOUNT OF PAST DUE SUPPORT AS STATED IN THE NOTICE, OR IN THE

13
CORRECTED AMOUNT IF NOTIFIED OF A CORRECTED AMOUNT, TO THE STATE

14
DISBURSEMENT UNIT, ALONG WITH INFORMATION NECESSARY TO IDENTIFY

15
THE PAYER AS REQUIRED BY THE NOTICE.

16
(2) A FINANCIAL INSTITUTION SHALL FORWARD MONEY AS REQUIRED

17
BY SUBSECTION (1) NO SOONER THAN THE NEXT DAY AND NO LATER THAN

18
THE SEVENTH DAY AFTER 1 OF THE FOLLOWING TAKES PLACE:

19
(A) THE FINANCIAL INSTITUTION NOTIFIES THE PAYER AND THE

20
IV-D AGENCY THAT THE PAYER'S FINANCIAL ASSETS ARE FROZEN AS

21
REQUIRED BY SECTION 25E AND HAS NOT RECEIVED, WITHIN 21 DAYS

22
AFTER THE DAY ON WHICH THE FINANCIAL INSTITUTION SENT THE

23
NOTICES, A NOTICE FROM THE IV-D AGENCY THAT THE PAYER HAS SUBMIT-

24
TED A CHALLENGE TO THE LEVY UNDER SECTION 25F.

25
(B) THE FINANCIAL INSTITUTION RECEIVES, WITHIN THE TIME

26
LIMIT PRESCRIBED IN SUBDIVISION (A), A NOTICE FROM THE IV-D

27
AGENCY THAT THE PAYER SUBMITTED A CHALLENGE TO THE LEVY AND

06059'01 * 24

1
RECEIVES THE SUBSEQUENT IV-D AGENCY NOTICE REQUIRED BY SECTION

2
25F, DIRECTING THE FINANCIAL INSTITUTION TO ACT IN ACCORDANCE

3
WITH EITHER THE IV-D AGENCY REVIEW DETERMINATION OR THE CIRCUIT

4
COURT DECISION.

5
(3) IF, IN ORDER TO FORWARD SUFFICIENT MONEY TO THE SDU, THE

6
FINANCIAL INSTITUTION MUST CONVERT 1 OR MORE FINANCIAL ASSETS TO

7
CASH, THE FINANCIAL INSTITUTION SHALL EXECUTE THE CONVERSION,

8
ASSESSING A RESULTING FEE OR OTHER COST OR PENALTY AGAINST THE

9
PAYER. IF THE PAYER'S FINANCIAL ASSETS ARE INSUFFICIENT TO PAY

10
THE PAST DUE SUPPORT AMOUNT PLUS RESULTING FEES AND OTHER COSTS

11
OR PENALTIES, THE FINANCIAL INSTITUTION MAY DEDUCT THE FEES,

12
COSTS, AND PENALTIES BEFORE FORWARDING THE BALANCE OF THE MONEY.

13
SEC. 25H. (1) IF AN ACTION IS FILED IN CIRCUIT COURT WITHIN

14
THE TIME LIMIT PRESCRIBED IN SECTION 25F, THE CIRCUIT COURT SHALL

15
REVIEW THE MATTER DE NOVO. THE ACTION IS GOVERNED BY THIS SEC-

16
TION AND THE MICHIGAN COURT RULES. THE CIRCUIT COURT REVIEW IS

17
NOT LIMITED TO MISTAKES OF FACT.

18
(2) ALL OF THE FOLLOWING APPLY IN AN ACTION GOVERNED BY THIS

19
SECTION:

20
(A) THE CIRCUIT COURT SHALL ONLY ADDRESS THE ISSUES OF THE

21
PROPRIETY OF THE LEVY AND WHETHER THE LEVY AMOUNT IS CORRECT.

22
(B) THE CIRCUIT COURT SHALL NOT ADMIT EVIDENCE OR CONSIDER

23
AN ISSUE THAT IS RELATED TO CUSTODY, PARENTING TIME, OR THE

24
AMOUNT OF SUPPORT UNDER A SUPPORT ORDER AND THAT IS NOT RELATED

25
TO THE LEVY AGAINST A PAYER'S FINANCIAL ASSETS.

06059'01 * 25

1
(C) THE CIRCUIT COURT SHALL NOT MODIFY A SUPPORT ORDER. A

2
COURT FINDING REGARDING A MONTHLY OR PAST DUE SUPPORT AMOUNT DOES

3
NOT MODIFY THE UNDERLYING SUPPORT ORDER.

4
SEC. 25I. (1) IF, AFTER A FINANCIAL INSTITUTION FORWARDS

5
MONEY TO THE STATE DISBURSEMENT UNIT, ALL OF THE FORWARDED MONEY

6
IS RETURNED TO THE PAYER DUE TO A MISTAKE OF FACT OR COURT ORDER,

7
THE IV-D AGENCY SHALL REIMBURSE THE PAYER FOR A FEE, COST, OR

8
PENALTY THAT THE FINANCIAL INSTITUTION ASSESSED AGAINST THE PAYER

9
UNDER SECTION 25G.

10
(2) IF THE TOTAL AMOUNT OF PAST DUE SUPPORT THE PAYER OWES

11
UNDER ALL SUPPORT ORDERS SUBJECT TO LEVY UNDER SECTION 25C IS

12
MORE THAN THE AMOUNT OF MONEY A FINANCIAL INSTITUTION FORWARDS

13
THE SDU UNDER SECTION 25G, THE SDU SHALL ALLOCATE THE MONEY AMONG

14
THOSE SUPPORT ORDERS BY MULTIPLYING THE TOTAL AMOUNT OF MONEY

15
FORWARDED BY THE PERCENTAGES ARRIVED AT BY DIVIDING THE PAST DUE

16
SUPPORT AMOUNT UNDER EACH OF THOSE SUPPORT ORDERS BY THE TOTAL OF

17
THE PAST DUE SUPPORT AMOUNTS UNDER ALL OF THOSE SUPPORT ORDERS.

18
Sec. 28. (1) The COURT FAMILY SERVICES office of the

19
friend of the court may petition the court for an order to sus-

20
pend a payer's occupational license, driver's license, or recrea-

21
tional or sporting license, or any combination of the licenses,

22
if all of the following circumstances are true:

23
(a) An arrearage has accrued in an amount greater than the

24
amount of periodic support payments payable for 6 months 1

25
MONTH under the payer's support order.

06059'01 * 26

1
(b) The payer holds an occupational license, driver's

2
license, or recreational or sporting license or the payer's

3
occupation requires an occupational license.

4
(c) An order of income withholding is not applicable or has

5
been unsuccessful in assuring regular payments on the support

6
obligation and regular payments on the arrearage.

7
(2) An A COURT FAMILY SERVICES office of the friend of

8
the court shall not file a petition as authorized under

9
subsection (1) unless the office sends the payer a notice that

10
includes all of the following information:

11
(a) The amount of the arrearage.

12
(b) That the payer's occupational license, driver's license,

13
or recreational or sporting license, or any combination of the

14
licenses, may be subject to an order of suspension.

15
(c) That the suspension order will be entered and sent to

16
the licensing agency unless the payer responds by paying the

17
arrearage or requesting a hearing within 21 14 days after the

18
date of mailing the notice.

19
(d) That, at the hearing, the payer may do either of the

20
following:

21
(i) Object to the proposed suspension based on a mistake of

22
fact concerning the overdue support amount or the payer's

23
identity.

24
(ii) Suggest to the court a schedule for the payment of the

25
arrearage.

26
(e) That, if the payer believes that the amount of support

27
ordered should be modified due to a change in circumstances, the

06059'01 * 27

1
payer may file a petition with the court for modification of the

2
support order.

06059'01 * Final page. GWH