Bill Text: MI HB4119 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Civil procedure; garnishment; garnishment of periodic payments; revise procedure. Amends sec. 4012 of 1961 PA 236 (MCL 600.4012). TIE BAR WITH: HB 4120'15
Spectrum: Partisan Bill (Republican 7-0)
Status: (Passed) 2015-04-15 - Assigned Pa 14'15 With Immediate Effect [HB4119 Detail]
Download: Michigan-2015-HB4119-Engrossed.html
HB-4119, As Passed Senate, March 26, 2015
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4119
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending section 4012 (MCL 600.4012), as amended by 2012 PA 304.
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 A
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.until the balance of the
judgment is satisfied.
(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 garnishments
have priority in the
following
order in which they are received. Both of the following
have priority over a garnishment, regardless of the order in which
they are received:
(a)
A garnishment resulting from an obligation of court
ordered
support An order of income
withholding as that term is
defined in section 2 of the support and parenting time enforcement
act, 1982 PA 295, MCL 552.602.
(b)
A levy of the this state or a governmental unit of the
this state to satisfy a tax liability.
(c)
Any other garnishments, in the order in which they are
served.
(3) If a garnishment of periodic payments is suspended
pursuant to an order under sections 6201 to 6251 and the order is
subsequently set aside, the garnishment retains its priority.
(4) A garnishment of periodic payments or a notice of failure
is not valid or enforceable unless the garnishment is served on the
garnishee in accordance with the Michigan court rules.
(5) While a garnishment of periodic payments is in effect, the
plaintiff shall do both of the following:
(a) At least once every 6 months after the plaintiff receives
the first payment under the garnishment, provide to the garnishee
and defendant a statement setting forth the balance remaining on
the judgment, including interest and costs. A failure to send a
timely statement under this subdivision does not affect the
garnishment or any obligation of the garnishee under the
garnishment.
(b) Within 21 days after the balance of the judgment has been
paid in full, including all interest and costs, provide to the
garnishee and defendant a release of garnishment.
(6) A plaintiff shall not request that a default be entered
against a garnishee under a garnishment of periodic payments unless
both of the following apply:
(a) If the garnishee fails to file a disclosure within 14 days
after service of the garnishment or fails to perform any other
required act, the plaintiff has served on the garnishee a notice of
failure setting forth the required act or acts that the garnishee
has failed to perform.
(b) The garnishee has failed, within 28 days after the date of
service of the notice of failure under subdivision (a), to cure the
identified failure by mailing to the plaintiff and defendant a
disclosure certifying that the garnishee will immediately begin
withholding any available funds pursuant to the garnishment as
provided by statute or court rule, or has commenced performing any
other required act.
(7) The plaintiff shall attach to a request for entry of a
default as allowed under subsection (6) proof of serving the notice
of failure. The plaintiff shall send a copy of the request for
entry of a default by certified mail to the garnishee at the
garnishee's principal place of business or registered agent.
(8) After entry of a default under subsection (6) and before
entry of a default judgment, the garnishee may cure the identified
failure by mailing to the court, plaintiff, and defendant a
disclosure certifying that the garnishee will immediately begin
withholding any available funds pursuant to the garnishment as
provided by statute or court rule or that it has commenced
performing any other required act.
(9) After a default has been entered under subsection (6), the
plaintiff may file with the court a request for default judgment
for an amount that does not exceed the full amount of the unpaid
judgment, interest, and costs, as stated in the request and
garnishment. The plaintiff shall send a copy of the request for
default judgment by certified mail to the garnishee at the
garnishee's principal place of business or resident agent.
(10) On motion of the garnishee filed within 21 days after
entry of a default judgment under subsection (9), the court shall
do 1 or more of the following, as applicable:
(a) If the garnishee certifies by affidavit that its failure
to comply with the garnishment was inadvertent or caused by an
administrative error, mistake, or other oversight and it will
immediately begin withholding any available funds or immediately
begin performing any other required act pursuant to the garnishment
as provided by statute or court rule, reduce the default judgment
to not more than the amount that would have been withheld if the
garnishment had been in effect for 56 days.
(b) If any of the following circumstances exist, set aside the
default judgment:
(i) The garnishee was not liable to the defendant for any
periodic payments after service of the garnishment.
(ii) The garnishment, notice of failure, request for entry of
a default, or request for default judgment was not properly served
or sent as required by this section.
(iii) The notice of failure was materially inaccurate or
incomplete.
(11) A garnishee may recover an amount for which the garnishee
is liable because of the entry of a default judgment under
subsection (9) or (10) from future periodic payments to the
defendant as provided in section 7 of 1978 PA 390, MCL 408.477.
(12) (3)
Except as otherwise provided by
statute, a plaintiff
shall
pay a fee of $6.00 $35.00 to
the garnishee at the time a writ
to
the garnishee of garnishment of periodic
payments is served upon
on the garnishee.
(13) This section does not apply to any of the following:
(a) An order of income withholding as that term is defined in
section 2 of the support and parenting time enforcement act, 1982
PA 295, MCL 552.602.
(b) A levy for tax liability.
(c) A levy under section 15(m) of the Michigan employment
security act, 1936 (Ex Sess) PA 1, MCL 421.15.
(14) (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 that
are applied 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.
Enacting section 1. This amendatory act applies to a writ of
garnishment issued after September 30, 2015.
Enacting section 2. This amendatory act does not take effect
unless House Bill No. 4120 of the 98th Legislature is enacted into
law.
