April 21, 2004, Introduced by Rep. Lipsey and referred to the Committee on Judiciary.
A bill to amend 1969 PA 317, entitled
"Worker's disability compensation act of 1969,"
by amending section 821 (MCL 418.821), as amended by 1982 PA
282.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 821. (1) A
payment under this act shall not be is
2 not assignable or subject
to attachment or garnishment or and
3 shall not be held liable
in any way for a debt. In the case of
4 the insolvency of If an employer becomes insolvent,
liability
5 for compensation under
this act shall constitute is a first
6 lien upon all the property of the employer liable for the
7 compensation, paramount to all other claims or liens, except for
8 wages and taxes, which
lien shall be enforced and is
9 enforceable by order of the court.
10 (2) This section shall
does not apply to or affect the
1 validity of an assignment made to an insurance company; health
2 maintenance organization operating under a certificate of
3 authority issued under chapter 35 of the insurance code of 1956,
4 1956 PA 218, MCL 500.3501 to 500.3580, or licensed under former
5 Act No. 264 of the
Public Acts of 1974, or 1974 PA
264 or
6 former part 210 of Act
No. 368 of the Public Acts of 1978, as
7 amended, being
sections 333.21001 to 333.21099 of the Michigan
8 Compiled Laws the public health code, 1978 PA 368; or a
medical
9 care and hospital service corporation organized or consolidated
10 under former Act No.
108 or 109 of the Public Acts of 1939
11 1939 PA 108 or 1939 PA 109, or any successor organization making
12 an advance or payment to an employee under a group disability or
13 group hospitalization
insurance policy which that provides that
14 benefits shall not be
are not payable under the policy for a
15 period of disability or hospitalization resulting from accidental
16 bodily injury or sickness arising out of or in the course of
17 employment. When a
group disability or hospitalization
18 insurance company;
health maintenance organization licensed under
19 former Act No. 264 of
the Public Acts of 1974, or part 210 of
20 Act No. 368 of the
Public Acts of 1978, as amended; or a medical
21 care and hospital
service corporation organized or consolidated
22 under former Act No.
108 or 109 of the Public Acts of 1939, or
23 any successor
organization enforces an assignment given to it as
24 provided in this
section, it A person described in
this
25 subsection that enforces an assignment of a payment under this
26 act shall pay, pursuant to rules established by the director, a
27 portion of the attorney fees of the attorney who secured the
1 worker's compensation recovery.
2 (3) As used in
this section, "insurance company" includes a
3 self-insurer. If an
insurance company insures both worker's
4 compensation and group
disability or group hospitalization, it
5 shall be permitted the
adjustment provided in this section. This
6 section does not apply to the assignment of payments made under a
7 structured settlement that is part of or made under a redemption
8 agreement.
9 (4) A labor
management health and welfare fund shall be is
10 entitled to the same rights of assignment as an insurance company
11 is entitled to under this section. An insurance company that
12 provides both worker's compensation insurance and group
13 disability or group hospitalization insurance is entitled to the
14 adjustment provided in this section.
15 (5) As used in this section, "insurance company" includes a
16 self-insurer.
17 Enacting section 1. This amendatory act does not take
18 effect unless Senate Bill No. _____ or House Bill No. 5780
19 (request no. 05870'03) of the 92nd Legislature is enacted into
20 law.