HOUSE BILL NO. 5238

October 25, 2023, Introduced by Reps. Wilson, Rheingans, Dievendorf, Hood, Morgan and Tsernoglou and referred to the Committee on Economic Development and Small Business.

A bill to amend 1961 PA 236, entitled

"Revised judicature act of 1961,"

by amending section 8371 (MCL 600.8371), as amended by 2005 PA 151, and by adding section 5755.

the people of the state of michigan enact:

Sec. 5755. (1) The court may order that the records of a summary proceeding for termination of a tenancy of residential property under this chapter or chapter 57a be expunged if 1 or more of the following apply:

(a) The court determines that the plaintiff's action is sufficiently without a basis in fact or law, which may include a lack of jurisdiction.

(b) All of the following apply:

(i) Judgment for possession was entered in the summary proceedings.

(ii) The judgment was entered 3 years or more before the motion to expunge the records.

(iii) The court determines that expunging the records is clearly in the interests of justice, and that those interests are not outweighed by the public's interest in knowing about the records, after having considered the following factors:

(A) Circumstances beyond the control of the tenant that led to the eviction.

(B) Other extenuating circumstances under which the order of eviction was granted.

(c) The summary proceedings were brought under section 5714(1)(a) or (c) and a judgment of possession was not entered.

(d) The judgment was a judgment by stipulation of the parties and the moving party has complied with the terms of the stipulated agreement.

(e) The judgment was a judgment or judgment of dismissal entered in the moving party's favor.

(2) On the motion of a tenant, manufactured home park resident, or landlord, or on the court's own motion, a court may order that the records of summary proceedings under this chapter or chapter 57a be expunged if 1 or more of the following apply:

(a) The premises was sold under the foreclosure of a mortgage or land contract, the tenancy was terminated because the defendant continued in possession of the premises after the time limited by law for redemption of the premises, and either of the following applies:

(i) The defendant vacated the premises before the summary proceedings were filed.

(ii) The defendant did not receive a written demand for possession 90 days or more before the summary proceedings were filed.

(b) The summary proceedings were filed during the state of emergency declared under Executive Order No. 2020-4 or any extension of that order, including an order issued under section 2253 of the public health code, 1978 PA 368, MCL 333.2253.

(3) If under subsection (1) or subsection (2) the court determines the record should be expunged, the court shall enter an appropriate order setting aside the judgment and expunging the official records of the action pertaining to the moving party. On entry of the order, the judgment is deemed not to have been entered, and the moving party may answer accordingly any questions relating to its occurrence.

(4) As used in this section, "official records" means all records relating to the summary proceedings that are maintained by the court, including, but not limited to, the complaint, any other pleadings, a proof of service, findings of the court, and all other papers, records, documents, and evidence, including exhibits and transcripts of testimony.

Sec. 8371. (1) In the district court, the fees prescribed in this section shall must be paid to the clerk of the court.

(2) Before a civil action is commenced in the district court, the party commencing the action shall pay to the clerk the sum of $150.00 if the amount in controversy exceeds $10,000.00. For each fee collected under this subsection, the clerk shall transmit $31.00 to the treasurer of the district funding unit in which the action was commenced, and shall transmit the balance to the state treasurer for deposit in the civil filing fee fund created by section 171.

(3) Before a civil action is commenced in the district court, the party commencing the action shall pay to the clerk the sum of $65.00 if the amount in controversy exceeds $1,750.00 but does not exceed $10,000.00. For each fee collected under this subsection, the clerk shall transmit $23.00 to the treasurer of the district funding unit in which the action was commenced, of which not less than $5.00 shall must be used by the district funding unit to fund a drug treatment court if one is planned, established, or operated in that judicial district. If the entire amount attributable to the $5.00 portion is not needed for the operation of a drug treatment court, the balance that is not needed for that purpose shall must be used for the operation of the district court. If a drug treatment court is not planned, established, or operated in that judicial district, all $23.00 shall must be used for the operation of the district court. The clerk of the district court shall transmit the balance of the filing fee to the state treasurer for deposit in the civil filing fee fund created by section 171.

(4) Before a civil action is commenced in the district court, the party commencing the action shall pay to the clerk the sum of $45.00 if the amount in controversy exceeds $600.00 but does not exceed $1,750.00. For each fee collected under this subsection, the clerk shall transmit $17.00 to the treasurer of the district funding unit in which the action was commenced, of which not less than $5.00 shall must be used by the district funding unit to fund a drug treatment court if one is planned, established, or operated in that judicial district. If the entire amount attributable to the $5.00 portion is not needed for the operation of a drug treatment court, the balance that is not needed for that purpose shall must be used for the operation of the district court. If a drug treatment court is not planned, established, or operated in that judicial district, all $17.00 shall must be used for the operation of the district court. The clerk of the district court shall transmit the balance of the filing fee to the state treasurer for deposit in the civil filing fee fund created by section 171.

(5) Before a civil action is commenced in the district court, the party commencing the action shall pay to the clerk the sum of $25.00 if the amount in controversy does not exceed $600.00. For each fee collected under this subsection, the clerk shall transmit $11.00 to the treasurer of the district funding unit in which the action was commenced, of which not less than $5.00 shall must be used by the district funding unit to fund a drug treatment court if one is planned, established, or operated in that judicial district. If the entire amount attributable to the $5.00 portion is not needed for the operation of a drug treatment court, the balance that is not needed for that purpose shall must be used for the operation of the district court. If a drug treatment court is not planned, established, or operated in that judicial district, all $11.00 shall must be used for the operation of the district court. The clerk of the district court shall transmit the balance of the filing fee to the state treasurer for deposit in the civil filing fee fund created by section 171.

(6) The judge shall order payment of any statutory fees waived or suspended if the person subject to the fee is receiving public assistance or is determined by the court to be indigent.

(7) Neither this state nor a political subdivision of this state shall be is required to pay a filing fee in a civil infraction action.

(8) Except for civil actions filed for relief under chapter 43, 57, or 84, if a civil action is filed for relief other than money damages, the filing fee shall must be equal to the filing fee in actions for money damages in excess of $1,750.00 but not in excess of $10,000.00 as provided in subsection (3) and shall must be transmitted in the same manner as a fee under subsection (3) is transmitted. If a claim for money damages is joined with a claim for relief other than money damages, the plaintiff shall pay a supplemental filing fee in the same amount as required under subsections (2) to (5).

(9) If a trial by jury is demanded, the party making the demand at the time shall pay the sum of $50.00. Failure to pay the fee at the time the demand is made constitutes a waiver of the right to a jury trial. The sum shall amount paid must be taxed in favor of the party paying the fee, in case if the party recovers a judgment for costs. For each fee collected under this subsection, the clerk shall transmit $10.00 to the state treasurer for deposit in the juror compensation reimbursement fund created in section 151d.

(10) A sum fee of $20.00 shall must be assessed for all motions filed in a civil action. A motion fee shall must not be assessed in a civil infraction action or for a motion under section 5755. For each fee collected under this subsection, the clerk shall transmit $10.00 to the state treasurer for deposit in the state court fund created in section 151a and shall transmit the balance shall be transmitted to the treasurer of the district funding unit for the district court in the district in which the action was commenced.