SB-0528, As Passed House, December 11, 2014

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 528

A bill to amend 1972 PA 239, entitled

"McCauley-Traxler-Law-Bowman-McNeely lottery act,"

by amending section 32 (MCL 432.32), as amended by 2012 PA 428.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 32. (1) Before payment of a prize of $1,000.00 or more,

the bureau shall determine both of the following:

(a) Whether department of treasury records show that the

lottery winner has a current liability to this state or a support

arrearage.

(b) Whether unemployment insurance agency records show that

the lottery winner has any current liability for restitution of

unemployment benefits, penalty, or interest under section 15 of the

Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.15.

that the lottery winner has any current liability to the department

of human services.

(2) The department of treasury shall provide the bureau with a

list or computer access to a compilation of persons known to the

department to have a current liability to this state, including a

delinquent ~~accounts~~ account of money ~~due and owing~~ owed to a court

that ~~have~~ has been assigned to this state for collection, or a

support arrearage. The information shall be updated not less than

once a month.

(3) If a liability to this state, a support arrearage, or an

unemployment compensation debt, or a debt to the department of

human services is identified under subsection (1), the bureau shall

ascertain the amount owed from the department of treasury, or the

unemployment insurance agency, or the department of human services,

as applicable.

(4) After ascertaining the amount owed by the lottery winner

under subsection (3), the bureau shall pay the amount determined

under subsection (3) to the department of treasury and pay the

balance, if any, to the lottery winner. The department of treasury

shall apply the amount ~~of the prize~~ as determined under subsection

(3) as follows:

(a) First to any liability to this state other than an

assigned delinquent account of money ~~due and owing~~ owed to a court,

or an unemployment compensation debt, or a debt to the department

of human services.

(b) Next to any support arrearage.

(d) Next to any debt to the department of human services.

(e) ~~(d)~~ Next to any assigned delinquent accounts of money ~~due~~

~~and owing~~ owed to a court.

~~(e) The balance, if any, shall be paid to the lottery winner.~~

(5) Except for a payment applied to a liability under

subsection (4)(c) or (d), a lottery winner shall be given notice

and an opportunity for a hearing before the department of treasury

or its designee with respect to the liability to which the prize is

to be applied if the liability has not been reduced to judgment or

has not been finalized under statutory review provisions of the

statute under which the liability arose. The notice shall be given

by regular mail. The lottery winner may request a hearing before

the department of treasury within 15 days after the date of the

notice by making a written request to the state treasurer.

(6) An amount applied to pay a support arrearage shall be paid

by ~~the bureau to~~ the department of treasury ~~, which shall pay the~~

~~amount to the office of the friend of the court for the appropriate~~

~~judicial circuit or~~ to the state disbursement unit ~~in the same~~

~~manner as a payment pursuant to an order of income withholding~~

~~under section 9~~ for disbursement as provided in section 48 of the

support and parenting time enforcement act, 1982 PA 295, MCL

~~552.609.~~552.648.

(7) In regard to information provided by the department of

treasury to the bureau under this section, the bureau is subject to

the confidentiality restrictions and penalties provided in section

28(1)(f) and (2) of 1941 PA 122, MCL 205.28. In regard to

information provided by the unemployment insurance agency to the

bureau under section 15 of the Michigan employment security act,

1936 (Ex Sess) PA 1, MCL 421.15, the bureau is subject to the

confidentiality restrictions and penalties provided in sections 11

and 54 of the Michigan employment security act, 1936 (Ex Sess) PA

1, MCL 421.11 and 421.54. In regard to information provided by the

department of human services to the bureau, the bureau is subject

to the same extent as is the department of human services to

restrictions prescribed by federal regulations governing temporary

assistance to needy families or other federal programs, by rules of

the department of human services, or otherwise, for preventing the

disclosure of confidential information to any person not authorized

by law to receive the information.

(8) ~~Each office of the friend of the court shall report to the~~

The office of child support shall provide the names of persons who

have a current support arrearage ~~and the office of child support~~

~~shall provide that information~~ to the department of treasury.

(9) As used in this section:

~~(a) "Office of the friend of the court" means an agency~~

~~created in section 3 of the friend of the court act, 1982 PA 294,~~

~~MCL 552.503.~~

(a) "State disbursement unit" means the entity established by

section 6 of the office of child support act, 1971 PA 174, MCL

400.236.

(b) "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 90 days