October 15, 2008, Introduced by Reps. Robert Jones, Leland, Alma Smith, Cushingberry, Tobocman, Coulouris and Dean and referred to the Committee on Judiciary.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending sections 4031, 4061, 4061a, 6215, 6231, and 6245 (MCL
600.4031, 600.4061, 600.4061a, 600.6215, 600.6231, and 600.6245),
section 4061 as amended and section 4061a as added by 1994 PA 346.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
4031. (1) The Statutory provisions of the statutes
relating
to exemptions from execution , and the manner of levying
upon
on property belonging to a class or species in for which
exemptions
are by law allowed , shall be applicable by law apply to
the application of property and obligations to claims by attachment
and garnishment.
(2)
In any a garnishment proceeding, where the indebtedness
liability
of the garnishee to the principal
defendant is money owed
to
the principal defendant on account of plaintiff is limited to
the following, as applicable:
(a) If the indebtedness of the garnishee to the principal
defendant
is because of the sale to the garnishee
of milk, or
cream, or
both produced on the a farm or farms of the principal
defendant,
the garnishee's liability to the plaintiff is limited to
40%
of such money; the
indebtedness.
(b)
personal labor performed by the principal defendant or his
family,
the garnishee's liability to the plaintiff is limited by
the
exemptions allowed under section 7511. If the indebtedness of
the garnishee to the principal defendant is because the garnishee
is a financial institution holding money in an account wholly or
partially owned by the principal defendant, 25% of the money owned
by the principal defendant.
(3) The following are exempt from and shall not be applied to
claims by attachment and garnishment:
(a) A state tax credit refund.
(b) Money in an individual development account established
under section 57k of the social welfare act, 1939 PA 280, MCL
400.57k.
(c) Money held in an account with a financial institution that
is attributable to earnings, as that term is defined in 15 USC
1672, of the principal defendant.
Sec. 4061. (1) A plaintiff shall serve garnishment process
issued
from a court in Michigan this
state against the this state
of
Michigan upon on
the state treasurer or other state
employee
designated by the state treasurer to receive garnishment process.
The state treasurer shall designate as many employees as he or she
considers necessary to receive garnishment process, at least 2 of
whom shall have offices in Lansing.
(2) The state treasurer shall designate the employees under
subsection (1) in writing and maintain a copy of the written
designation in the state treasurer's office. If the state treasurer
revokes the designation, the revocation shall be made in the same
manner as the designation. If a designated employee ceases to be
employed by the state treasurer to receive process under subsection
(1), the designation of that person is revoked immediately upon
termination of his or her employment.
(3)
In a garnishment proceeding in which the this state is the
garnishee, a plaintiff shall do all of the following:
(a) Serve upon the state treasurer or designated employee a
writ of garnishment that includes a verified statement signed by
the plaintiff, or his or her attorney or agent, identifying the
full amount including interest and taxed costs, claimed by the
plaintiff to be due upon the judgment against the defendant.
(b) At the time of service of the writ of garnishment, pay to
the state treasurer or designated employee a fee of $6.00.
(c) Within 7 days after service of the writ of garnishment on
the state treasurer or designated employee, do both of the
following:
(i) If the writ of garnishment is for a state tax
refund, or
credit,
serve a copy of the writ of
garnishment upon the defendant
in the manner prescribed by the Michigan court rules.
(ii) Serve upon the state treasurer any discovery request for
information related to the garnishment proceeding that may be in
the possession of the department of treasury.
(4) After receiving a discovery request pursuant to subsection
(3)(c), the state treasurer shall provide only that information in
the possession of the department of treasury that is not otherwise
exempted by law from disclosure. The plaintiff shall pay to the
state treasurer the reasonable costs incurred by the state
treasurer in providing the requested information.
(5) After receiving service of a writ of garnishment as
provided in subsection (3), the state treasurer or designated
employee shall do 1 of the following:
(a) If the writ is not for the garnishment of a state tax
refund, or
credit, respond in the manner prescribed for garnishment
procedures
garnishments under the Michigan court rules.
(b) If the writ is for garnishment of a state tax refund,
respond in the manner prescribed by section 4061a.
Sec. 4061a. (1) The state treasurer shall intercept a state
tax
refund or credit that is subject to a writ of garnishment
served upon the state treasurer pursuant to section 4061. Upon
intercepting
a state tax refund or credit pursuant to a writ of
garnishment, the state treasurer shall do all of the following:
(a) Calculate the amount available from the interception to
satisfy all or part of the garnishment, and within 90 days after
establishing
other liability for which the state tax refund or
credit
may be applied under section 30a of
Act No. 122 of the
Public
Acts of 1941, being section 205.30a of the Michigan Compiled
Laws
1941 PA 122, MCL 205.30a, do both of the following:
(i) File with the court a verified disclosure that identifies
the intercepted amount, less any amount paid or refunded because of
a state tax credit and any setoff, counterclaim, or other demand of
the state against the defendant.
(ii) Serve upon the plaintiff and defendant a copy of the
disclosure described in subparagraph (i).
(b) Unless notified by the court that objections to the writ
of garnishment have been filed, deposit the amount available for
the garnishment with either of the following pursuant to the terms
of the writ not less than 28 days after filing the disclosure
pursuant to subdivision (a):
(i) The clerk of the court.
(ii) The plaintiff's attorney of record in the garnishment
action, or, if the plaintiff is not represented by counsel, the
plaintiff or the plaintiff's designee.
(2) Objections to the writ of garnishment of a tax refund
shall be filed with the court within 14 days after the date of
service of the disclosure on the defendant.
(3)
If an interception of a state tax refund or credit does
not occur before October 31 of the year during which a writ of
garnishment
for a state tax refund or credit is to be processed,
both of the following apply:
(a) The state treasurer is not required to provide to the
defendant or file with the court a disclosure.
(b) The state treasurer is not required to provide to the
plaintiff a disclosure unless the plaintiff provides the state
treasurer with a written request for a disclosure between November
1 and December 31 of the tax year following the tax year for which
a
writ of garnishment of a state tax refund or credit was filed.
(4) A disclosure described in subsection (1) is not required
to be made under oath.
(5)
The This state's liability to the plaintiff under a writ
of garnishment issued under this section is limited to the amount
of
the tax refund or credit due to the defendant for the period the
writ is in effect, not including any amount paid or refunded
because of a state tax credit, less any setoff, counterclaim, or
other
demand of the this state against the defendant. As used in
this subsection, "state" includes the state treasurer.
(6)
If all or a portion of an intercepted state tax refund or
credit
is deposited with the clerk of the
court under subsection
(1), the court shall convey the deposited amount to the plaintiff's
attorney of record in the garnishment action or, if the plaintiff
is not represented by counsel, to the plaintiff.
(7) Michigan court rules that do not conflict with this
section
or section 4061 govern a garnishment in which the this
state is a garnishee.
(8) As used in this section, "state treasurer" includes an
employee designated by the state treasurer to act on his or her
behalf.
Sec.
6215. (1) On the date set for At the hearing
on a motion
under section 6205, the plaintiff may cross-examine the moving
party
as to the facts set forth on
the allegations in the motion,
and the judge may then enter an order requiring the defendant to
pay
to the clerk of the court or
directly to the plaintiff direct,
a
certain sum a specified
amount of money weekly, biweekly, or
monthly, to apply on the judgment.
(2)
The order shall stay An
order under this section stays the
issuance
of any a writ of garnishment for work and labor or for
money in an account with a financial institution during the period
that
the defendant complies with the order. The order shall does
not stay garnishment if the defendant fails to comply with its
terms.
Sec.
6231. (1) The garnishment of any money Subject to
subsection (3), if a court has ordered or the parties have agreed
that a judgment is payable in installments, the following are not
subject to garnishment:
(a) Money due or to become due for the personal work and labor
of
the defendant. upon a judgment made payable in installments
either
by the court order or agreement of parties is prohibited,
excepting
upon the written order of the judge. Any writ of
garnishment
issued without the order is void. The order may be made
following
due notice to the defendant if installments are due.
(b) Money in an account with a financial institution.
(2) Subject to subsection (3), a writ of garnishment
specifically issued against money or a right to receive money
described in subsection (1) is void.
(3) If installments described in subsection (1) are overdue,
and following notice to the defendant, a judge may issue a written
order allowing the garnishment of money or a right to receive money
described in subsection (1).
Sec.
6245. Nothing contained in this chapter shall be
construed
to prohibit and shall This
chapter does not prohibit a
plaintiff
from taking any legal means for the collection of to
collect a judgment, excepting the except for a garnishment of
money
due or to become due the defendant for the defendant's personal
work
and labor of the said defendant or for
money held in an
account with a financial institution.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6535(request no.
04264'07 a) of the 94th Legislature is enacted into law.