Bill Text: MI HB5390 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Civil procedure; garnishment; writ of garnishment regarding periodic payments; modify liability of garnishee. Amends sec. 4012 of 1961 PA 236 (MCL 600.4012). TIE BAR WITH: HB 5391'14
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2014-12-11 - Referred To Committee Of The Whole With Substitute S-1 [HB5390 Detail]
Download: Michigan-2013-HB5390-Introduced.html
HOUSE BILL No. 5390
March 5, 2014, Introduced by Reps. Cotter, McCready and Haveman and referred to the Committee on Commerce.
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 A writ of
garnishment
of periodic payments remains in effect for the period
prescribed
by the Michigan court rules. as
follows:
(a) A garnishment of a tax refund remains in effect as
provided in section 4061a.
(b) 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.
(c) Any other garnishment of periodic payments remains in
effect for the period prescribed by the Michigan court rules.
(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, 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) A writ of garnishment of wages, salary, commissions, or
other earnings under subsection (1) is not valid or enforceable
unless the writ is served on the garnishee in accordance with the
Michigan court rules.
(4) A garnishee under a garnishment of periodic payments that
fails to timely disclose as required by statute or court rule or do
another act as ordered by the court is liable for an amount that
does not exceed the amount that would have been withheld had the
writ of garnishment been in effect for 60 days or $100.00,
whichever is greater. A garnishee may recover an amount for which
the garnishee is liable under this subsection from future periodic
payments to the defendant as provided in section 7 of 1978 PA 390,
MCL 408.477.
(5) A garnishee is not liable for any amount under subsection
(4) unless both of the following occur:
(a) Within 14 days after the failure, the plaintiff serves a
notice of the failure on the garnishee in accordance with Michigan
court rules.
(b) The garnishee is provided 7 calendar days or more in which
to cure the failure.
(6) (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.
(7) As used in this section, "garnishment" means any order
directed to a third party to withhold periodic or nonperiodic
payments of assets.
(8) (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 does not take effect
unless Senate Bill No.____ or House Bill No. 5391 (request no.
03894'13) of the 97th Legislature is enacted into law.
