Bill Text: MI SB0249 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Insurance; no-fault; cross-reference to no-fault act in the support and parenting time enforcement act; amend to reflect amendments to the no-fault act. Amends sec. 25a of 1982 PA 295 (MCL 552.625a). TIE BAR WITH: SB 0248'15
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2015-04-23 - Referred To Second Reading [SB0249 Detail]
Download: Michigan-2015-SB0249-Engrossed.html
SB-0249, As Passed Senate, April 16, 2015
SENATE BILL No. 249
March 26, 2015, Introduced by Senator HUNE and referred to the Committee on Insurance.
A bill to amend 1982 PA 295, entitled
"Support and parenting time enforcement act,"
by amending section 25a (MCL 552.625a), as amended by 2009 PA 193.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 25a. (1) The amount of past due support that accrues
under a judgment as provided in section 3 or under the law of
another
state constitutes is a lien in favor of the recipient of
support against the real and personal property of a payer,
including, but not limited to, money to be paid as a distribution
from a decedent's estate; as the result of a claim for negligence,
personal injury, or death; under an arbitration award; under a
settlement of or judgment issued in a civil action; or as
compensation under a worker's compensation order, settlement,
redemption order, or voluntary payment. The lien is effective at
the time that the support is due and unpaid and continues until the
amount of past due support is paid in full or the lien is
terminated by the title IV-D agency.
(2) Liens that arise in other states shall be accorded full
faith and credit when the requirements of section 25b or 25c are
met.
(3) A lien created under subsection (1) is subordinate to a
prior perfected lien. All liens that arise under subsection (1) and
described in subsection (2) have equal priority.
(4) A lien shall not be perfected or levied under this act
unless the title IV-D agency has provided a notice to the payer
that liens exist by operation of law and that the payer's real and
personal property can be encumbered or seized if an arrearage
accrues in an amount that exceeds the periodic support payments
payable under the payer's support order for the time specified in
this act. Notice has been provided if it is in the payer's support
order or if it was mailed to the payer at any time.
(5) The title IV-D agency or another person required to
provide notice under this section or sections 25b to 25i shall
provide notice by paper, unless the person to be notified agrees to
notice by other means. The title IV-D agency or other person
providing notice under this section or sections 25b to 25i shall
complete and preserve proof of service of the notice in a form that
substantially conforms to the requirements for proof of service
under the Michigan court rules.
(6) A lien under subsection (1) does not arise against any of
the following:
(a) A financial asset pledged to a financial institution as
collateral.
(b) A financial asset to which a financial institution has a
prior right of setoff or other lien.
(c) Property or an allowance described in part 4 of article II
of the estates and protected individuals code, 1998 PA 386, MCL
700.2401
to 700.2404.700.2405.
(d) Fifty percent of the amount of compensation due to a payer
under a worker's compensation order, settlement, redemption order,
or voluntary payment.
(e) That portion of money to be paid as a distribution from a
decedent's estate; as the result of a claim for negligence,
personal injury, or death; under an arbitration award; under a
settlement of or judgment issued in a civil action; or as
compensation under a worker's compensation order, settlement,
redemption order, or voluntary payment that is owed for any of the
following:
(i) Attorney fees.
(ii) 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.
(iii) The medicaid program under the social welfare act, 1939 PA
280, MCL 400.1 to 400.119b, unless medicaid is subordinated to
child support under federal law.
(iv) 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. For the
purposes of compensation under a worker's compensation order,
settlement, redemption order, or voluntary payment, as used in this
subparagraph, "medical services" means services as described and
regulated under sections 315 and 319 of the worker's disability
compensation act of 1969, 1969 PA 317, MCL 418.315 and 418.319, and
the rules promulgated under those sections.
(v) An amount to reimburse an insurance company for the
expense incurred by the insurance company in responding to a lien
and levy under sections 25b to 25i. A reimbursement amount under
this subparagraph shall not exceed the actual expense or $50.00,
whichever is less, for each lien and levy or for each payment under
a lien and levy.
(vi) Other costs related to the arbitration, civil action, or
worker's compensation order, settlement, redemption order, or
voluntary payment.
(vii) For reimbursements Reimbursements to which an employer or
carrier is entitled under section 827 of the worker's disability
compensation act of 1969, 1969 PA 317, MCL 418.827.
(viii) For vocational Vocational rehabilitation costs,
reimbursements, or credits incidental to long- or short-term
disability programs or to pension or welfare benefit funds.
(ix) For a medicare A Medicare set aside account for future
medical
care or for future medicaid, Medicaid,
unless medicare or
medicaid
Medicare or Medicaid is subordinated to child support
under federal law.
(f) Money to be paid under an insurance policy for the repair
or replacement of real or tangible personal property.
(g) Money to be paid for allowable expenses that are payable
as
benefits under section 3107(1)(a) or (c) (d) of the insurance
code of 1956, 1956 PA 218, MCL 500.3107.
(7) The title IV-D agency does not have the authority to alter
an amount itemized in a redemption order. A lien that arises under
this act and a levy of that lien only affect that portion, as
prescribed in this section, of the payment due the payer under a
redemption order. A carrier shall not use the enforcement of a lien
and levy under this act as the basis for freezing or otherwise
refusing to pay out an amount itemized in a redemption order that
is not affected by the lien and levy under this act.
(8) As used in this section and sections 25b to 25i:
(a) "Carrier" means any of the following:
(i) "Carrier" as that term is defined in section 601 of the
worker's disability compensation act of 1969, 1969 PA 317, MCL
418.601.
(ii) A fund created under section 501 of the worker's
disability compensation act of 1969, 1969 PA 317, MCL 418.501.
(iii) The property and casualty guaranty association required to
be maintained by section 7911 of the insurance code of 1956, 1956
PA 218, MCL 500.7911.
(b) "Insurer" means that term as defined in section 106 of the
insurance code of 1956, 1956 PA 218, MCL 500.106.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. 248
of the 98th Legislature is enacted into law.
