SENATE BILL No. 1319

 

 

June 23, 2004, Introduced by Senators VAN WOERKOM, GARCIA and BIRKHOLZ and referred to the Committee on Families and Human Services.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1971 PA 174, entitled                                             

                                                                                

    "Office of child support act,"                                              

                                                                                

    by amending sections 1 and 6 (MCL 400.231 and 400.236), section 1           

                                                                                

    as amended by 2002 PA 564 and section 6 as added by 1999 PA 161.            

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 1.  As used in this act:                                               

                                                                                

2       (a) "Account" means any of the following:                                   

                                                                                

3                                                                                (i) A demand deposit account.                                                       

                                                                                

4       (ii) A draft account.                                                        

                                                                                

5       (iii) A checking account.                                                    

                                                                                

6       (iv) A negotiable order of withdrawal account.                               

                                                                                

7       (v) A share account.                                                        

                                                                                

8       (vi) A savings account.                                                      

                                                                                

9       (vii) A time savings account.                                                

                                                                                

10      (viii) A mutual fund account.                                                 

                                                                                


                                                                                

1       (ix) A securities brokerage account.                                         

                                                                                

2       (x) A money market account.                                                 

                                                                                

3       (xi) A retail investment account.                                            

                                                                                

4       (xii) An electronic access or debit card.                                    

                                                                                

5       (b) "Account" does not mean any of the following:                           

                                                                                

6                                                                                (i) A trust.                                                                        

                                                                                

7       (ii) An annuity.                                                             

                                                                                

8       (iii) A qualified individual retirement account.                             

                                                                                

9       (iv) An account covered by the employee retirement income                    

                                                                                

10  security act of 1974, Public Law 93-406, 88 Stat. 829.                      

                                                                                

11      (v) A pension or retirement plan.                                           

                                                                                

12      (vi) An insurance policy.                                                    

                                                                                

13      (c) "Address" means the primary address shown on the records                

                                                                                

14  of a financial institution used by the financial institution to             

                                                                                

15  contact an account holder.                                                  

                                                                                

16      (d) "Adult responsible for the child" means a parent,                       

                                                                                

17  relative who has physically cared for the child, putative father,           

                                                                                

18  or current or former guardian of a child, including an                      

                                                                                

19  emancipated or adult child.                                                 

                                                                                

20      (e) "Current employment" means employment within 1 year                     

                                                                                

21  before a friend of the court request for information.                       

                                                                                

22      (f) "Department" means the family independence agency.                      

                                                                                

23      (g) "Financial asset" means stock, a bond, a money market                   

                                                                                

24  fund, a deposit, an account, or a similar instrument.                       

                                                                                

25      (h) "Financial institution" means any of the following:                     

                                                                                

26                                                                               (i) A state or national bank.                                                       

                                                                                

27      (ii) A state or federally chartered savings and loan                         


                                                                                

1   association.                                                                

                                                                                

2       (iii) A state or federally chartered savings bank.                           

                                                                                

3       (iv) A state or federally chartered credit union.                            

                                                                                

4       (v) An insurance company.                                                   

                                                                                

5       (vi) An entity that offers any of the following to a resident                

                                                                                

6   of this state:                                                              

                                                                                

7       (A) A mutual fund account.                                                  

                                                                                

8       (B) A securities brokerage account.                                         

                                                                                

9       (C) A money market account.                                                 

                                                                                

10      (D) A retail investment account.                                            

                                                                                

11      (vii) An entity regulated by the securities and exchange                     

                                                                                

12  commission that collects funds from the public.                             

                                                                                

13      (viii) An entity that is a member of the national association                 

                                                                                

14  of securities dealers and that collects funds from the public.              

                                                                                

15      (ix) An entity that collects funds from the public.                          

                                                                                

16      (i) "Office" means the office of child support.                             

                                                                                

17      (j) "Friend of the court case" means that term as defined in                

                                                                                

18  section 2 of the friend of the court act, 1982 PA 294, MCL                  

                                                                                

19  552.502.  The term "friend of the court case", when used in a               

                                                                                

20  provision of this act, is not effective until on and after the              

                                                                                

21  effective date of section 5a of the friend of the court act, MCL            

                                                                                

22  552.505a.                                                                   

                                                                                

23      (k) "Payer", "recipient of support", "source of income", and                

                                                                                

24  "support" mean those terms as defined in section 2 of the support           

                                                                                

25  and parenting time enforcement act, 1982 PA 295, MCL 552.602.               

                                                                                

26                                                                               (l) "State disbursement unit" or "SDU" means the entity                             

                                                                                

27  established in section 6 for centralized state receipt and                  


                                                                                

1   disbursement of support and fees.                                           

                                                                                

2       (m) "Title IV-D" means part D of title IV of the social                     

                                                                                

3   security act, chapter 531, 49 Stat. 620, 42  U.S.C.  USC 651 to             

                                                                                

4   655, 656 to 657, 658a to 660, and 663 to 669b.                              

                                                                                

5       Sec. 6.  (1) The state disbursement unit is established as                  

                                                                                

6   the direct responsibility of the office.  The SDU shall use                 

                                                                                

7   automated procedures, electronic processes, and computer-driven             

                                                                                

8   technology to the maximum extent feasible, efficient, and                   

                                                                                

9   economical to receive and disburse support and fees.                        

                                                                                

10      (2) The SDU is the single location to which a payer or source               

                                                                                

11  of income subject to this section shall send a support or fee               

                                                                                

12  payment.  The SDU shall disburse a support payment to the                   

                                                                                

13  recipient of support within 2 business days after the SDU                   

                                                                                

14  receives the support payment.  Not less than twice each calendar            

                                                                                

15  month, the SDU shall disburse fees that it receives to the                  

                                                                                

16  appropriate county treasurer or office of the friend of the                 

                                                                                

17  court.                                                                      

                                                                                

18      (3) If a payer or source of income attempts to make a support               

                                                                                

19  or fee payment to the SDU and the payment transaction fails due             

                                                                                

20  to nonsufficient funds, the SDU may take actions to collect from            

                                                                                

21  the payer or source of income the support or fee payment amount,            

                                                                                

22  plus an amount for the expense of those actions.                            

                                                                                

23      (4) Beginning 1 year after the effective date of the                        

                                                                                

24  amendatory act that added this subsection, the SDU shall disburse           

                                                                                

25  support electronically to either the recipient of support's                 

                                                                                

26  account in a financial institution or to a special account that             

                                                                                

27  may be accessed by the recipient of support by an electronic                


                                                                                

1   access card.