HOUSE BILL No. 5511

 

May 1, 2014, Introduced by Reps. McCready, Kelly, Glardon, Kurtz and Hooker and referred to the Committee on Families, Children, and Seniors.

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

by amending section 6458 (MCL 600.6458), as amended by 2002 PA 429.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 6458. (1) In rendering any a judgment against the this

 

state, or any a department, commission, board, institution, arm, or

 

agency of this state, the court of claims shall determine and

 

specify in that the judgment the department, commission, board,

 

institution, arm, or agency from whose appropriation that the

 

judgment shall must be paid.

 

     (2) Upon any On a judgment against the this state or any a

 

department, commission, board, institution, arm, or agency of this

 

state becoming final, or upon on allowance of any a claim by the


 

state administrative board and upon certification of the claim by

 

the secretary of the state administrative board to the clerk of the

 

court of claims, the clerk of the court of claims shall certify to

 

the state treasurer the fact that that the judgment was entered or

 

that the claim was allowed and on receiving the certification the

 

state treasurer shall pay the claim shall thereupon be paid from

 

the unencumbered appropriation of the department, commission,

 

board, institution, arm, or agency if the state treasurer

 

determines the unencumbered appropriation is sufficient for the

 

payment. In the event that funds are If money is not available to

 

pay the judgment or allowed claim as provided in this subsection,

 

the state treasurer shall instruct the clerk of the court of claims

 

to issue a voucher against an appropriation made by the legislature

 

for the payment of judgment claims and allowed claims. In the event

 

that funds are If money is not available to pay the judgment or

 

allowed claim as provided in this subsection, the state treasurer

 

shall report that fact , together with and the name of the

 

claimant, the date of the judgment , date or of the allowance of

 

the claim by the state administrative board, and the amount shall

 

be reported of the judgment or allowed claim to the legislature at

 

its next session, and shall pay the judgment or allowed claim shall

 

be paid as soon as money is available for that purpose. The clerk

 

of the court of claims shall not certify any a judgment to the

 

state treasurer until the period for appeal from that the judgment

 

shall have has expired, unless written stipulation between the

 

attorney general and the claimant or his or her attorney, waiving

 

any right of appeal or new trial, is filed with the clerk of the


 

court of claims.

 

     (3) The clerk of the court of claims shall approve vouchers

 

under the direction of the court for the payment of the several

 

judgments rendered by the court. All warrants issued in

 

satisfaction of those judgments rendered by the court of claims

 

shall be transmitted to the clerk of the court of claims for

 

distribution; and all warrants issued in satisfaction of claims

 

allowed by the state administrative board shall be transmitted to

 

the secretary of the state administrative board for distribution.

 

     (4) On a judgment described in subsection (2) becoming final

 

or on a claim being allowed and certified to the clerk of the court

 

of claims as described in subsection (2), the plaintiff or claimant

 

shall provide to the clerk of the court of claims any information

 

required by the state treasurer to identify the plaintiff or

 

claimant or, if applicable, each individual for whose benefit the

 

action was brought or the claim made, for purposes of complying

 

with subsections (5) to (7) or to perform the treasurer's duties

 

under subsections (8) and (9). The state treasurer shall notify the

 

clerk of the court of claims of the information needed from a

 

plaintiff or claimant to satisfy this subsection.

 

     (5) When certifying a judgment or allowed claim to the state

 

treasurer under subsection (2), the clerk of the court of claims

 

shall provide to the state treasurer the name of the plaintiff or

 

claimant and the identifying information provided under subsection

 

(4). If the plaintiff or claimant brought the action or made the

 

claim in a representative capacity, the clerk of the court of

 

claims shall provide to the state treasurer the name and


 

identifying information for each individual for whose benefit the

 

action was brought or claim made.

 

     (6) The state treasurer shall not issue a warrant in the

 

satisfaction of a judgment or claim until the state treasurer

 

determines whether the plaintiff or claimant or, if applicable,

 

individual for whose benefit the action was brought or claim made,

 

is indebted for any of the following:

 

     (a) Support.

 

     (b) An amount due to this state.

 

     (c) An amount due to a subdivision of this state.

 

     (d) An amount due under a court order for restitution, fines,

 

costs, fees, reimbursements, penalties, or assessments.

 

     (7) Subject to subsection (8), the state treasurer shall

 

deduct the amount of any indebtedness determined under subsection

 

(6) from the amount due under the judgment or claim and issue

 

warrants in satisfaction of the indebtedness and a warrant to the

 

plaintiff or claimant for the difference between the indebtedness

 

and the judgment or claim. If the plaintiff or claimant has

 

multiple obligations described in subsection (6) and if the

 

judgment or claim is insufficient to satisfy the obligations in

 

full, the state treasurer shall pay the obligations in the

 

following order:

 

     (a) First, to support.

 

     (b) Next, to any amount due under a court order.

 

     (c) Next, pro rata to any remaining amounts due.

 

     (8) The state treasurer shall not deduct any amount under

 

subsection (7) from the portion of the judgment or claim that is


 

owed for any of the following:

 

     (a) Attorney fees.

 

     (b) Court costs and other litigation costs, including, but not

 

limited to, medical examination costs, expenses for reports,

 

deposition fees, court reporter fees, and record copy fees.

 

     (c) The medicaid program under the social welfare act, 1939 PA

 

280, MCL 400.1 to 400.119b, unless medicaid is subordinated to

 

support under federal law.

 

     (d) Medical services or a reimbursement for a payment made for

 

medical services either to or by an insurer, health maintenance

 

organization, or nonprofit health care corporation.

 

     (e) Other costs related to the action or claim.

 

     (f) Vocational rehabilitation costs, reimbursements, or

 

credits incidental to long- or short-term disability programs or to

 

pension or welfare benefit funds.

 

     (g) For a medicare set-aside account for future medical care

 

or for future medicaid, unless medicare or medicaid is subordinated

 

to support under federal law.

 

     (9) The state treasurer shall give a plaintiff or claimant

 

notice by regular mail and an opportunity for a hearing before the

 

department of treasury or its designee with respect to any

 

indebtedness determined under subsection (6) if the indebtedness

 

has not been reduced to judgment or has not been finalized under

 

statutory review provisions of the statute under which the

 

liability arose. The plaintiff or claimant 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.


 

     (10) Subsections (4) and (5) apply to all judgments and

 

claims, notwithstanding any order in an action that prohibits

 

disclosure of the name of a plaintiff, claimant, or individual for

 

whose benefit the action was brought or claim was made. If such a

 

protective order exists, the clerk of the court of claims shall

 

notify the state treasurer of the order when providing the name of

 

the plaintiff, claimant, or individual under subsection (5), and

 

the name and identifying information of the plaintiff, claimant, or

 

individual is exempt from disclosure under the freedom of

 

information act, 1976 PA 442, MCL 15.231 to 15.246.

 

     (11) As used in this section, "support" means that term as

 

defined in section 2a of the friend of the court act, 1982 PA 294,

 

MCL 552.502a.