Civil procedure; garnishment and attachment; department of

treasury to acknowledge receipt of writ of garnishment, and

disclose to plaintiff that a tax return has been filed by the

defendant; require.

CIVIL PROCEDURE: Garnishment and attachment; INCOME TAX: Other;

INCOME TAX: Refunds; STATE AGENCIES (EXISTING): Treasury

A bill to amend 1961 PA 236, entitled

"Revised judicature act of 1961,"

by amending sections 4061 and 4061a (MCL 600.4061 and 600.4061a),

section 4061 as amended and section 4061a as added by 1994 PA

346.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 4061. (1) A plaintiff shall serve garnishment process

2 issued from a court in Michigan against the state of Michigan

3 upon the state treasurer or other state employee designated by

4 the state treasurer to receive garnishment process. The state

5 treasurer shall designate as many employees as he or she consid-

6 ers necessary to receive WRITS OF garnishment process ISSUED

7 AGAINST THIS STATE BY COURTS IN THIS STATE, at least 2 of whom

8 shall have offices in Lansing. (2) The state treasurer shall

9 designate the employees under subsection (1) in writing and

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1 maintain a copy of the written designation in the state

2 treasurer's office. If the state treasurer revokes the designa-

3 tion, the revocation shall be made in the same manner as the

4 designation. If a designated employee ceases to be employed by

5 the state treasurer to receive process under subsection (1)

6 WRITS OF GARNISHMENT, the designation of that person is revoked

7 immediately upon termination of his or her employment.

8 (2) (3) In a garnishment proceeding in which the THIS

9 state is the garnishee, a plaintiff shall do all of the

10 following:

11 (a) Serve upon the state treasurer or designated employee

12 DESIGNATED UNDER SUBSECTION (1) a writ of garnishment that

13 includes a verified statement signed by the plaintiff, or his or

14 her attorney or agent, identifying the full amount, including

15 interest and taxed costs, claimed by the plaintiff to be due upon

16 the judgment against the defendant.

17 (b) At the time of service of the writ of garnishment, pay

18 to the state treasurer or designated employee a fee of $6.00.

19 (c) Within 7 days after service of the writ of garnishment

20 on the state treasurer or designated employee, do both of the

21 following:

22 (i) If the writ of garnishment is for a state tax refund or

23 credit, serve a copy of the writ of garnishment upon the

24 defendant in the manner prescribed by the Michigan court rules.

25 (ii) Serve upon the state treasurer any discovery request

26 THAT THE PLAINTIFF HAS for information related to the garnishment

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1 proceeding that may be IS in the possession of the department

2 of treasury.

3 (3) (4) After receiving a discovery request pursuant to

4 UNDER subsection (3)(c) (2), the state treasurer shall provide

5 only that information in the possession of the department of

6 treasury that is not otherwise exempted by law from

7 disclosure. The plaintiff shall pay to the state treasurer the

8 reasonable costs incurred by the state treasurer in providing the

9 requested information.

10 (4) (5) After receiving service of a writ of garnishment

11 as provided in subsection (3) (2), the state treasurer or

12 designated employee DESIGNATED UNDER SUBSECTION (1) shall do 1

13 of the following:

14 (a) If the writ is not for the garnishment of a state tax

15 refund or credit, respond in the manner prescribed for garnish-

16 ment procedures PROCEEDINGS under the Michigan court rules.

17 (b) If the writ is for garnishment of a state tax refund,

18 SEND A WRITTEN ACKNOWLEDGMENT OF RECEIPT OF THE WRIT TO THE

19 PLAINTIFF AND respond in the manner prescribed by section 4061a.

20 Sec. 4061a. (1) The state treasurer shall intercept a state

21 tax refund or credit that is subject to a writ of garnishment

22 served upon the state treasurer pursuant to section 4061. Upon

23 intercepting a state tax refund or credit pursuant to a writ of

24 garnishment, the state treasurer shall do all of the following:

25 (a) Calculate the amount available from the interception to

26 satisfy all or part of BE APPLIED TO the garnishment , and,

27 within 90 days after establishing IDENTIFYING other liability

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1 for which the state tax refund or credit may be applied under

2 section 30a of Act No. 122 of the Public Acts of 1941, being

3 section 205.30a of the Michigan Compiled Laws 1941 PA 122, MCL

4 205.30A, do both of the following:

5 (i) File with the court a verified disclosure that identi-

6 fies the intercepted amount , less AND THE AMOUNT OF any

7 setoff, counterclaim, or other demand of the THIS state against

8 the defendant. THE DISCLOSURE NEED NOT BE MADE UNDER OATH.

9 (ii) Serve upon the plaintiff and defendant a copy of the

10 disclosure described in subparagraph (i).

11 (b) Unless notified by the court that objections to the writ

12 of garnishment have been filed, deposit the amount available for

13 the garnishment with either of the following pursuant to the

14 terms of the writ not less than 28 days after filing the disclo-

15 sure pursuant to UNDER subdivision (a):

16 (i) The clerk of the court.

17 (ii) The plaintiff's attorney of record in the garnishment

18 action , or, if the plaintiff is not represented by counsel,

19 the plaintiff or the plaintiff's designee.

20 (2) Objections to the A writ of garnishment of a tax

21 refund shall be filed with the court within 14 days after the

22 date of service of the disclosure on the defendant.

23 (3) If an interception of a state tax refund or credit does

24 not occur before October 31 of the year during which a writ of

25 garnishment for a state tax refund or credit is to be processed,

26 both of the following apply:

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1 (a) The state treasurer is not required to provide A

2 DISCLOSURE to the defendant or file A DISCLOSURE with the court.

3 a disclosure.

4 (b) The EXCEPT AS PROVIDED IN SUBSECTION (4), THE state

5 treasurer is not required to provide A DISCLOSURE to the plain-

6 tiff a disclosure unless the plaintiff provides GIVES the

7 state treasurer with a written request for a disclosure between

8 November 1 and December 31 of the tax year. following the tax

9 year for which a writ of garnishment of a state tax refund or

10 credit was filed.

11 (4) A disclosure described in subsection (1) is not

12 required to be made under oath. IF A TAX RETURN IS FILED BY OR

13 ON BEHALF OF A DEFENDANT WHOSE STATE TAX REFUND OR CREDIT IS THE

14 SUBJECT OF A WRIT OF GARNISHMENT UNDER THIS SECTION BUT A STATE

15 TAX REFUND OR CREDIT OF THE DEFENDANT IS NOT INTERCEPTED, THE

16 STATE TREASURER SHALL DISCLOSE THAT TO THE PLAINTIFF.

17 (5) The THIS state's liability to the plaintiff under a

18 writ of garnishment issued under this section is limited to the

19 amount of the tax refund or credit due to the defendant for the

20 period the writ is in effect, less any setoff, counterclaim, or

21 other demand of the THIS state against the defendant. As used

22 in this subsection, "state" includes the state treasurer.

23 (6) If all or a portion of an intercepted state tax refund

24 or credit is deposited with the clerk of the court under subsec-

25 tion (1), the court shall convey the deposited amount to the

26 plaintiff's attorney of record in the garnishment action or, if

27 the plaintiff is not represented by counsel, to the plaintiff.

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1 (7) Michigan court rules that do not conflict with this

2 section or section 4061 govern a garnishment PROCEEDING in which

3 the THIS state is a garnishee.

4 (8) As used in this section, "state treasurer" includes an

5 employee designated by the state treasurer to act on his or her

6 behalf.

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