HB-5592, As Passed House, June 7, 2012

SUBSTITUTE FOR

HOUSE BILL NO. 5592

     A bill to amend 1961 PA 236, entitled

"Revised judicature act of 1961,"

by amending section 4012 (MCL 600.4012), as amended by 1996 PA 10.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 4012. (1) Except for garnishment of a tax refund under

section 4061a or garnishment of wages, salary, commissions, or

other earnings, and subject to subsection (2), a writ of

garnishment of periodic payments remains in effect for the period

prescribed by the Michigan court rules. A writ of garnishment of

wages, salary, commissions, or other earnings remains in effect for

182 days.

     (2) A garnishee is not liable for a writ of garnishment of

periodic payments under subsection (1) to the extent that the

garnishee is required to satisfy another writ of garnishment

against the same defendant having a higher priority or having the

same priority but received at an earlier date. For purposes of this

subsection, writs of garnishment have priority in the following

order:

     (a) A garnishment resulting from an obligation of court

ordered support as defined in section 2 of the support and

parenting time enforcement act, Act No. 295 of the Public Acts of

1982, being section 552.602 of the Michigan Compiled Laws.1982 PA

295, MCL 552.602.

     (b) A levy of the state or a governmental unit of the state to

satisfy a tax liability.

     (c) Any other garnishments, in the order in which they are

served.

     (3) Except as otherwise provided by statute, a plaintiff shall

pay a fee of $6.00 at the time a writ to the garnishee of

garnishment of periodic payments is served upon the garnishee.

     (4) As used in this section and section 8410a, "periodic

payments" means wages, salary, commissions, and other earnings,

land contract payments, rent, and other periodic debt or contract

payments that are or become payable during the effective period of

the writ of garnishment. Periodic payments do not mean any of the

following:

     (a) Payments by a financial institution of interest on a

deposit account.

     (b) Charges made by a financial institution automatically

against an account which applies to a debt under an automatic

payment authorization executed by the account owner.

     (c) Payments made by a financial institution to honor a check

or draft or to comply with an account holder's order of withdrawal

of funds from an account.

     (d) Interest earned on a certificate of deposit that is paid

into a deposit account.