DEPARTMENTS' COLLECTION DUTIES S.B. 891 (S-2): FLOOR ANALYSIS




Senate Bill 891 (Substitute S-2 as reported by the Committee of the Whole)
Sponsor: Senator Bill Hardiman
Committee: Families and Human Services

CONTENT
The bill would amend provisions of the revenue Act concerning the responsibility of the Department of Treasury for collecting past due amounts owed to the State. The bill would do the following:

-- Require the Department, except as otherwise provided in the Act, to supervise and control the collection of all past due money and accounts owed to the State.
-- Authorize the Department to settle and compromise claims and accounts, but require the approval of the State Administrative Board for the settlement of a claim or account over $750 at a discount of more than 15%.
-- Require the Department of Human Services (DHS) to collect support payments owed to the State and authorize the DHS to settle and compromise claims and accounts and issue receipts for collections, subject to the authority granted to it by several statutes.


MCL 205.1 et al. Legislative Analyst: Curtis Walker

FISCAL IMPACT
The bill is designed to make the revenue Act consistent with State law and current practice regarding the collection of child support. It also would enable the Department of Human Services to manage the total arrearage effectively.


Date Completed: 7-10-06 Fiscal Analyst: Bill Bowerman

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb891/0506